Institutional investments in Indian real estate exceeded $6.5 billion in 2024, reflecting a 22% rise from the previous year’s $5.4 billion, as per a report by Colliers India. The industrial and warehousing sector led the way, attracting $2.5 billion, or 39% of the total investment, closely followed by the office sector, which accounted for 36%.
The report highlighted that in 2024, the industrial and warehousing sector captured the largest share of total real estate investments at 39%, surpassing the office sector.
The country’s strong manufacturing and industrial growth in 2024 reflects key macroeconomic indicators, including the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP).
The residential sector saw significant growth in 2024, attracting $1.1 billion, a 46% increase compared to 2023. Foreign investments dominated the real estate market, contributing $4.3 billion, or 66% of the total inflows. Domestic investments also experienced steady growth, rising by 27% year-on-year.
The fourth quarter of 2024 saw a strong performance, with investments reaching $1.9 billion—2.3 times higher than in 2023. Domestic investments played a significant role in Q4 2024, accounting for 43% of the total inflows. The report emphasized that this reflects India-based institutional investors’ increasing confidence alongside international investors’ continued interest.
“Private equity investments in Indian real estate have witnessed strong momentum in 2024, buoyed by robust domestic growth and sustained investor confidence. With record $6.5 billion inflows in 2024, Indian realty investments have been the highest since 2020. Interestingly, APAC investors drove almost one-third of the foreign inflows in the country’s real estate during the year,” Badal Yagnik, Chief Executive Officer, Colliers India, said.
He noted that Tier-I cities expect to remain the primary destination for capital, driven by government support for infrastructure development and the ‘Make in India’ initiative. While global investor confidence will likely stay positive, 2025 expects greater capital allocation from domestic investors across office, residential, and industrial sectors.
The report also highlighted that while multi-city deals comprised 39% of the total, Mumbai received approximately $1.6 billion in investments, representing 24% of the country’s real estate inflows in 2024.
The office sector dominated Mumbai’s investment landscape, capturing 58% of the city’s annual inflows, primarily in select developmental assets. The industrial and warehousing sectors followed, accounting for 20% of the real estate investments in Mumbai during the year. Investment inflows in Bengaluru, Chennai, and Delhi NCR remained stable, each holding an 8-9% share of total investments.
“The year 2024 was a watershed year for real estate investments in India, wherein industrial and warehousing asset inflows surpassed annual investments in the office segment. With $2.5 billion inflows, large-sized deals drove industrial and warehousing investments in 2024,” Vimal Nadar, Senior Director and Head of Research at Colliers India, said.
He added that the growing demand for high-quality Grade A developments and shifting supply-chain models will continue encouraging investors to focus on consolidating industrial and warehousing assets in India. Additionally, expanding manufacturing and strong consumption levels will draw domestic and global investments in ready-to-use and developmental industrial properties.
