India’s real estate sector witnessed a significant surge in institutional investments, reaching a staggering $6.5 billion in 2024, up by 22% year-on-year from $5.4 billion in 2023. According to Colliers India, this marks the highest annual inflow in five years, driven by both domestic and foreign investors.
Huge Growth in Industrial and Warehousing Segment
The industrial and warehousing segment dominated the market, attracting $2.5 billion, which accounted for 39% of the total inflows. This robust growth in the industrial sector can be attributed to the government’s emphasis on manufacturing and industrial growth.
Office Segment Follows Closely
The office segment followed closely with $2.3 billion, primarily led by foreign investors. Residential investments also showed robust growth, rising by 46% year-on-year to $1.1 billion, highlighting the increasing demand for housing in India.
Domestic Investments Surge Ahead
Domestic investments surged by 27% in 2024, contributing to one-third of the total inflows. Notably, in the fourth quarter, domestic investors accounted for 43% of the $1.9 billion inflows, which were 2.3 times higher than the same quarter in 2023.
Cities Drive Growth in India’s Real Estate
Mumbai retained its top spot, attracting 24% of the total investments in 2024. Foreign investments accounted for 66% of the overall inflows, with APAC investors contributing significantly. With both domestic and international investors showing increased confidence, Indian real estate is poised for continued growth in 2025.
Forecast for India’s Real Estate in 2025
According to Badal Yagnik, CEO of Colliers India, private equity investments in Indian real estate have shown strong momentum in 2024, driven by robust domestic growth and sustained investor confidence. Tier-I cities will remain attractive in 2025, supported by infrastructure development and the ‘Make in India’ initiative.
