Indian Real Estate Investments Reach US$6.5 Billion in 2024 - A New Milestone
Bengaluru, Chennai, and Delhi NCR each contributed 8-9% to the total market, showcasing a steady and continuous flow of investments. The year 2024 saw a significant surge in both foreign and domestic investments.
Real EstateInvestmentIndiaColliersInstitutional InvestorsReal Estate NewsJan 06, 2025
This achievement represents the highest investment volume in the sector since 2020, driven by both domestic and international players.
The final quarter of 2024 was particularly influential in this growth, contributing US$1.9 billion—2.3 times more than the same period in 2023.
Domestic investments accounted for 43% of Q4 inflows, signaling a growing confidence and sustained interest among India-based institutional investors.
Sectoral Trends
The industrial and warehousing sector emerged as the top-performing asset class, attracting US$2.5 billion in investments—a staggering 190% increase from 2023, representing 39% of total inflows.
This surge is a testament to the rising demand for Grade A developments and enhanced logistics infrastructure, supported by large-scale transactions.
The residential sector also saw impressive growth, with investments reaching US$1.1 billion, a 46% increase from 2023.
However, the office segment experienced a 23% decline, recording US$2.3 billion in inflows.
Alternate assets, including data centers and senior housing, saw a sharp 94% drop, attracting only US$39.5 million.
City-Wise Distribution
Mumbai retained its position as the top investment destination, securing US$1.6 billion, or 24% of total inflows.
The city witnessed significant investments in the office segment, followed by industrial and warehousing assets.
Bengaluru, Chennai, and Delhi NCR each contributed 8-9% to the overall market, demonstrating steady and consistent contributions.
Foreign vs.
Domestic Investments
Foreign investors continued to dominate the market, contributing US$4.3 billion, or 66% of total inflows.
Notably, APAC investors accounted for nearly one-third of foreign investments.
Domestic investments, on the other hand, grew by 27% year-on-year, with increased capital deployment in residential, office, and industrial segments.
Outlook for 2025
“With a record US$6.5 billion inflows in 2024, Indian real estate investments have been the highest since 2020,” said Badal Yagnik, CEO of Colliers India.
“Tier-I cities will continue to attract the majority of capital, driven by government initiatives like ‘Make in India’ and infrastructure development.
While global investors remain confident, 2025 will likely see increased participation from domestic players across office, residential, and industrial assets.”
The report highlights the evolving dynamics of the Indian real estate market, with industrial and warehousing leading the charge and domestic investors playing a more prominent role in shaping the sector’s future.
Frequently Asked Questions
What was the total investment in Indian real estate in 2024?
The total investment in Indian real estate in 2024 was US$6.5 billion.
Which sector saw the highest growth in investments in 2024?
The industrial and warehousing sector saw the highest growth in investments in 2024, with a 190% increase from 2023.
What was the share of domestic investments in the final quarter of 2024?
Domestic investments accounted for 43% of the total inflows in the final quarter of 2024.
Which cities are leading in real estate investments?
Mumbai, Bangalore, Chennai, and Delhi NCR are leading in real estate investments, with Mumbai securing the top position.
What is the outlook for 2025 according to Badal Yagnik, CEO of Colliers India?
According to Badal Yagnik, CEO of Colliers India, Tier-I cities will continue to attract the majority of capital, driven by government initiatives like ‘Make in India’ and infrastructure development. 2025 will likely see increased participation from domestic players across office, residential, and industrial assets.
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