In 2024, institutional investments in Indian real estate reached $6.5 billion, showcasing a 22% growth compared to $5.4 billion in 2023, according to Colliers India. This impressive growth highlights the strong momentum in the sector, with foreign inflows contributing significantly at 66% of the total investments. Domestic investments also rose steadily, with a 27% year-on-year increase.
The industrial and warehousing segment led market, accounting for 39% of the total investments, amounting $2.5 billion. This was closely followed by the office segment, which held a 36% share. Robust manufacturing and industrial growth, reflected in key indicators like the PMI and IIP, drove the dominance of industrial and warehousing investments.
The residential segment also witnessed remarkable growth, securing $1.1 billion in investments, a 46% rise from 2023. The fourth quarter of 2024 saw a particularly strong performance, with $1.9 billion in investments—2.3 times the volume of the same period in 2023. Domestic investments in Q4 accounted for 43% of the total inflows, signaling growing confidence among Indian institutional investors.
Mumbai emerged as a leader in real estate investments, attracting $1.6 billion, with the office segment accounting for 58% of the city’s inflows. Industrial and warehousing assets followed with a 20% share. Other cities, including Bengaluru, Chennai, and Delhi NCR, each contributed 8-9% to the total investments.
Experts predict continued interest in Tier-I cities due to government initiatives like 'Make in India' and infrastructure development. Industrial and warehousing assets are expected to attract significant domestic and global capital, supported by rising demand for Grade A developments and enhanced supply chain models. With a positive outlook for 2025, the Indian real estate market remains a key focus for both domestic and international investors.
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