India’s real estate sector has reached a historic milestone in 2024, with institutional investments hitting a record USD 8.9 billion, surpassing the previous peak of USD 8.4 billion set in 2007 by 6%. This marks a 51% increase from the USD 5.8 billion recorded in 2023, with deal activity rising 47% year-over-year (YOY). The surge in investments underscores growing confidence in India’s real estate market and positions 2024 as a pivotal year for the sector.
Foreign institutional investors (FIIs) accounted for 63% of the total investments, highlighting the continued international interest in Indian real estate. Domestic investors also contributed significantly, accounting for 37% of the total, a marked increase from the average 19% share between 2019 and 2022. A notable development in 2024 was the substantial participation of domestic institutions in Qualified Institutional Placements (QIPs), which raised USD 2.7 billion for the real estate sector.
For the first time in years, the residential sector emerged as the highest recipient of institutional investments, capturing 45% of the total share, overtaking the office sector. Investments in residential real estate increased fourfold from the previous year, reaching over USD 4 billion. The shift toward residential investments was driven by a rise in equity contributions, which accounted for 54% of total residential investments, signaling stronger investor confidence in the sector’s potential.
Real Estate Investment Trusts (REITs) also saw significant activity in 2024, with investments reaching nearly USD 800 million, more than tripling from 2023 levels. Additionally, non-core assets, such as warehousing and data centers, made up 77% of total transaction volumes, reflecting a growing appetite for higher-risk investments. The warehousing sector, in particular, was boosted by a major transaction involving Abu Dhabi Investment Authority and KKR, which invested USD 1.5 billion in Reliance Retail Ventures’ warehousing assets.
Emerging sectors such as data centers, student housing, life sciences, and healthcare are also gaining investor interest, diversifying the Indian real estate landscape. The largest platform commitment of 2024 was a USD 1.7 billion partnership between RMZ Digital Infrastructure Partners and Colt Data Centre Services, highlighting the surge in investments in digital infrastructure.
Looking ahead, JLL expects continued growth and diversification in India’s real estate market in 2025, with emerging sectors attracting further investments. The anticipated launch of two InvITs in warehousing and a new REIT in mid-2025 signals the strong growth prospects for the sector in the coming years.
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