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:
- Industrial Growth: India’s manufacturing boom and enhanced logistics efficiency fueled industrial & warehousing investments.
- Domestic Momentum: Domestic investments surged, reflecting growing confidence among Indian institutional investors.
- 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
