Industrial and Warehousing Lead with $2.5 Billion in 2024 Real Estate Investments
In 2024, institutional investments in industrial and warehousing surged, tripling from 2023 levels to $2.5 billion, driven by robust manufacturing and logistics capabilities in India. This growth highlights a strong investor sentiment in the Indian real e
Industrial InvestmentsWarehousingReal EstateForeign InvestorsDomestic InvestorsReal EstateJan 07, 2025
This segment drove overall investments worth $6.5 billion in the sector, with 80 per cent of the growth fuelled by foreign investments, highlighting India's rising manufacturing and logistics capabilities.
Rising demand for superior-quality Grade A developments and evolving supply-chain models will continue to incentivise investors in consolidating industrial and warehousing assets in the country.
Furthermore, manufacturing scale-up and healthy consumption levels are likely to attract domestic and global investments in both ready-to-use as well as developmental industrial assets going forward, said Vimal Nadar, senior director and head of research at Colliers India.
After a slow start in 2024, office segment investments surged in the second half (H2), reaching $2.3 billion (Rs 19,715 crore), a 36 per cent increase, with approximately 77 per cent of the share coming from foreign investors.
The residential segment also grew significantly, rising 46 per cent annually to $1.1 billion (Rs 9,429 crore).
The report further noted that multi-city deals accounted for 39 per cent of total investments in 2024, while Mumbai led with $1.6 billion (24 per cent share).
Office assets dominated Mumbai’s inflows at 58 per cent, followed by industrial and warehousing at 20 per cent.
Bengaluru, Chennai, and Delhi NCR each contributed 8-9 per cent.
In 2024, institutional investments (both foreign and domestic) in Indian real estate touched $6.5 billion (Rs 55,718 crore), marking a substantial 22 per cent increase from the previous year’s $5.4 billion (Rs 46,288 crore).
This surge underscores a robust investor sentiment for Indian real estate, setting an annual record for domestic and foreign investments since 2020.
The fourth quarter of 2024 witnessed a strong performance, with investments reaching $1.9 billion (Rs 16,286 crore), nearly double the same period in 2023.
Domestic investors played a key role, contributing 43 per cent of the Q4 inflows.
Looking ahead, Tier-I cities will continue to attract the majority of the capital amidst government impetus on infrastructure development and the ‘Make in India’ initiative.
While global investors’ confidence is likely to remain upbeat, 2025 is expected to see increased capital deployment from domestic players across office, residential, and industrial assets, said Badal Yagnik, chief executive officer of Colliers India.
In 2024, the industrial and warehousing segment accounted for the highest share of overall real estate investment volumes at 39 per cent, surpassing the office segment.
Manufacturing and industrial growth in the country remained robust throughout the year, reflected in macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP).
At $4.3 billion (Rs 36,859 crore), foreign inflows continued to drive annual real estate investments, contributing 66 per cent of the total, while domestic investments witnessed a steady rise, surging 27 per cent year-on-year (Y-o-Y).
With the government's policy interventions, India is becoming the centre of global investment, paving the way for further acceleration in real estate demand.
In the coming years, investments are likely to increase, and institutions will start looking at major micro-markets like South and Lutyens’ Delhi as lucrative investment options, said Ankur Jalan, chief executive officer of Golden Growth Fund (GGF), a real estate-focused alternative investment fund (AIF).
The buoyant demand that the sector has seen across asset classes and by a wide range of investors, owing to multiple factors—from growing aspirations to enhanced homeownership sentiments and infrastructure development—means institutional investment from both global and domestic investors will further see a spike in the coming years, said Garvit Tiwari, director and co-founder of InfraMantra.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in 2024?
In 2024, institutional investments in Indian real estate touched $6.5 billion (Rs 55,718 crore), marking a substantial 22 per cent increase from the previous year.
How much did the industrial and warehousing segment grow in 2024 compared to 2023?
In 2024, the industrial and warehousing segment surged, tripling from 2023 levels to $2.5 billion (Rs 21,430 crore).
Which cities contributed the most to the real estate investments in 2024?
Mumbai led with $1.6 billion (24 per cent share), followed by Bengaluru, Chennai, and Delhi NCR, each contributing 8-9 per cent.
What percentage of the office segment investments came from foreign investors in 2024?
Approximately 77 per cent of the office segment investments came from foreign investors in 2024.
What is the projected trend for real estate investments in 2025?
2025 is expected to see increased capital deployment from domestic players across office, residential, and industrial assets, with global investors' confidence remaining upbeat.
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