Industrial and Warehousing Segments Dominate Indian Real Estate Investments in 2024 with USD 6.5 Billion
In 2024, institutional investments in Indian real estate reached a significant USD 6.5 billion, marking a 22% increase from the previous year. Mumbai alone accounted for 24% of these investments, with around USD 1.6 billion. The industrial and warehousing
Real EstateIndustrial And WarehousingInvestmentsMumbaiColliers IndiaReal Estate MumbaiJan 06, 2025
This growth reflects a strong appetite for Indian real estate among both domestic and foreign investors, marking an annual high since 2020.
The fourth quarter of 2024 was especially dynamic, with investment volumes totaling USD 1.9 billion, nearly 2.3 times higher than the same period in 2023.
This year-end momentum significantly contributed to the overall increase in investment volumes.
Notably, domestic investments played a crucial role in Q4 2024, accounting for 43% of the inflows during the final quarter.
This highlights the growing confidence of India-based institutional investors, complemented by sustained interest from international counterparts.
One of the key highlights of the report is the dominance of the industrial and warehousing segment, which accounted for 39% of overall real estate investment volumes in 2024.
This segment saw a substantial 190% increase compared to 2023, driven by robust manufacturing and industrial growth in the country.
The performance of macro-economic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP) further supports this trend.
The residential segment also witnessed substantial growth, with investments reaching USD 1.1 billion, a 46% increase from 2023 levels.
Foreign inflows continued to be the primary driver of annual real estate investments, accounting for 66% of the total, while domestic investments saw a steady rise of 27% year-over-year.
Badal Yagnik, chief executive officer of Colliers India, commented, 'Private equity investments in Indian real estate have gained significant momentum in 2024, supported by robust domestic growth and sustained investor confidence.
With a record USD 6.5 billion inflows in 2024, Indian real estate investments have reached their highest level since 2020.
APAC investors contributed nearly one-third of the foreign inflows in the country’s real estate sector.
We expect Tier-I cities to continue attracting the majority of capital, driven by government initiatives on infrastructure development and the 'Make in India' program.
Global investor confidence is likely to remain strong, and 2025 could see increased capital deployment from domestic players across office, residential, and industrial assets.'
The industrial and warehousing segment saw a significant surge in investments, nearly tripling from 2023 to 2024.
The segment attracted USD 2.5 billion, representing 39% of the total inflows, closely followed by the office segment at 36% share.
This growth is attributed to healthy domestic activity, improvements in logistics efficiency, and India’s growing capabilities as a global manufacturing hub.
Foreign investments accounted for over 80% of the total inflows in the industrial and warehousing segment during the year.
Vimal Nadar, senior director and head of research at Colliers India, stated, '2024 was a watershed year for real estate investments in India, with industrial and warehousing asset inflows surpassing annual investments in the office segment.
With USD 2.5 billion in inflows, large-sized deals drove industrial and warehousing investments in 2024.
Rising demand for high-quality Grade A developments and evolving supply-chain models will continue to incentivize investors to consolidate industrial and warehousing assets in the country.
Furthermore, manufacturing scale-up and healthy consumption levels are likely to attract both domestic and global investments in both ready-to-use and developmental industrial assets.'
Investments in the office segment, despite a slow start, picked up pace in the second half of 2024.
The segment saw USD 2.3 billion in inflows, accounting for 36% of the total.
Foreign investments made up about 77% of the office segment inflows during the year.
The residential segment also saw notable growth, with USD 1.1 billion in investments, driven by sustained interest from domestic players.
Mumbai emerged as the leading city for real estate investments in 2024, accounting for 24% of the total inflows with about USD 1.6 billion.
The office segment dominated investment inflows in Mumbai, capturing 58% of the total, followed by the industrial and warehousing segments at 20%.
Investment inflows in other Tier-I cities like Bengaluru, Chennai, and Delhi-NCR also remained steady, each accounting for 8-9% of the total inflows during the year.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in 2024?
In 2024, institutional investments in Indian real estate reached a significant USD 6.5 billion, marking a 22% increase from the previous year.
Which segment saw the highest investment volumes in 2024?
The industrial and warehousing segment saw the highest investment volumes, representing 39% of the total inflows.
How much did Mumbai contribute to the total real estate investments in 2024?
Mumbai contributed around USD 1.6 billion, accounting for 24% of the total real estate investments in 2024.
What was the growth rate of foreign inflows in the industrial and warehousing segment in 2024?
Foreign inflows in the industrial and warehousing segment grew by over 80% in 2024.
What factors contributed to the surge in industrial and warehousing investments in 2024?
The surge in industrial and warehousing investments in 2024 can be attributed to healthy domestic activity, improvements in logistics efficiency, and India’s growing capabilities as a global manufacturing hub.
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