Institutional investments in Indian real estate achieved a remarkable milestone in 2024, reaching USD 6.5 billion—a 22% increase compared to USD 5.4 billion in 2023. This marks the highest annual investment in Indian realty over the past five years, driven by robust growth in the industrial & warehousing segment, office spaces, and residential assets.

The industrial & warehousing segment emerged as the top-performing asset class, accounting for USD 2.5 billion in investments, a 190% surge from the previous year. The sector contributed 39% of the total realty inflows, surpassing the office segment’s USD 2.3 billion (36% share). Foreign investments dominated, contributing over 80% to the industrial inflows, highlighting India’s growing prominence as a global manufacturing hub.

The office segment also witnessed significant activity in the second half of the year, with investments rebounding to USD 2.3 billion. Meanwhile, residential investments grew by 46% YoY, reaching USD 1.1 billion, driven by sustained interest from domestic players.

Key Highlights of 2024 Realty Investments:

  • Total Investments: USD 6.5 billion, the highest since 2020, up 22% YoY.
  • Industrial & Warehousing: USD 2.5 billion, marking a 190% increase.
  • Office Assets: USD 2.3 billion, driven by foreign investments (77%).
  • Residential Sector: USD 1.1 billion, up 46% YoY.
  • Domestic Investments: Accounted for 33% of inflows, increasing by 27% YoY.

Mumbai attracted the highest share of investments at 24%, with USD 1.6 billion inflows primarily focused on office and industrial assets. Multi-city deals accounted for 39% of total investments, while Bengaluru, Chennai, and Delhi NCR maintained steady inflow shares of 8-9% each.

Key Drivers:

  1. Industrial Growth: India’s manufacturing boom and enhanced logistics efficiency fueled industrial & warehousing investments.
  2. Domestic Momentum: Domestic investments surged, reflecting growing confidence among Indian institutional investors.
  3. Foreign Capital: Foreign investments comprised 66% of the total inflows, with APAC investors contributing significantly.

Expert Insights:
“Indian real estate continues to attract robust investments, underscoring the sector’s resilience and growth potential. Industrial and warehousing assets have taken center stage, reflecting strong demand and India’s emergence as a manufacturing hub,” said Badal Yagnik, CEO, Colliers India.

Looking ahead, the real estate market is expected to sustain its momentum in 2025, with Tier-I cities remaining the primary focus. Rising demand for Grade A developments and evolving infrastructure initiatives are likely to drive further growth across asset classes.

City-Wise Investment Trends (2024):

  • Mumbai: USD 1.6 billion (24% share).
  • Multi-City Deals: 39% share of total investments.
  • Bengaluru & Chennai: 9% and 8% shares, respectively.

Indian real estate continues to shine as a lucrative investment destination, with 2024 marking a pivotal year in its growth trajectory.

Also Read: Industrial & Logistics Real Estate

You May Also Like

Blackstone Acquires 40% Stake in Kolte-Patil Developers

In a landmark deal, Blackstone has acquired a 40% stake in Kolte-Patil Developers, a leading real estate developer in India. The global investment firm has also launched an open offer to acquire an additional 26% stake, potentially raising its ownership to 66%. This move is expected to bring fresh capital, enhanced governance, and strategic expansion to Kolte-Patil while strengthening Blackstone’s presence in India’s booming residential real estate market.

Maharashtra Government Hikes Ready Reckoner Rates for 2025-26; Property Prices Set to Rise

The Maharashtra government has announced a revision in Ready Reckoner Rates (RRR) for 2025-26, leading to an average hike of 3.89% across the state. Mumbai sees a 3.4% increase, while Thane, Solapur, and other key cities experience sharper hikes. This revision is set to impact property valuations, stamp duty, and registration charges, potentially raising real estate costs for buyers and investors. Industry experts urge a gradual approach to balance market stability and affordability.

Peninsula Land Limited raises 150 Cr

Peninsula Land Limited (An Ashok Piramal Group Company), a prominent real estate…

Institutional investments in real estate rise 27% YoY at USD4.6Bn during Jan-Sep 2023; domestic investments up 1.7X

·       Foreign investments saw a 47% YoY rise, while domestic investments surged 70%…