Industrial & Warehousing Lead with USD 2.5 Billion in Real Estate Investments for 2024

Gurgaon, 06 January 2025: Institutional investments in Indian real estate surged to a remarkable USD 6.5 billion in 2024, marking a 22% increase from the previous year's USD 5.4 billion. The industrial and warehousing segment dominated the market, capturi

Real EstateIndustrialWarehousingInvestments2024Real EstateJan 06, 2025

Industrial & Warehousing Lead with USD 2.5 Billion in Real Estate Investments for 2024

Real Estate:Gurgaon, 06 January 2025 Institutional investments in Indian real estate saw a significant boost in 2024, reaching a substantial USD 6.5 billion.
This represents a 22% increase from the USD 5.4 billion recorded in 2023.
The year 2024 marked an annual high for both domestic and foreign investments since 2020, reflecting robust investor confidence in the Indian real estate market.

The fourth quarter of 2024 was particularly strong, with investments totaling USD 1.9 billion—2.3 times the amount in the same period of 2023.
This momentum significantly contributed to the higher investment volumes for the year.
Notably, domestic investments were a significant factor in Q4 2024, accounting for 43% of the inflows during the final quarter.
This highlights the growing confidence of India-based institutional investors, alongside sustained interest from international counterparts.

In 2024, the industrial and warehousing segment led the overall real estate investment volumes, capturing a 39% share.
This segment's growth is a positive indicator of the country's manufacturing and industrial strength, as reflected in macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and Index of Industrial Production (IIP).
The residential segment also saw notable growth, with investments reaching USD 1.1 billion, a 46% increase from 2023 levels.

Foreign investments continued to drive the market, contributing 66% of the total annual real estate investments, amounting to USD 4.3 billion.
However, domestic investments also saw a steady rise, growing 27% year-over-year.

Investment Inflows Trend

Industrial and warehousing investments in 2024 surged, reaching almost 2.9 times the inflows in 2023.
The segment attracted USD 2.5 billion in investments, representing 39% of the total inflows, closely followed by the office segment at 36%.
This surge in industrial and warehousing investments is a testament to the healthy domestic activity and enhanced logistics efficiency, as well as India's growing capabilities as a global manufacturing hub.
Foreign investments accounted for over 80% of the total inflows in the segment during the year.

Despite a slow start in the first few quarters, the office segment picked up pace in the second half of 2024.
With USD 2.3 billion in inflows, it accounted for 36% of the total investments during the year.
Foreign investments made up approximately 77% of the office segment's inflows.
The residential segment also showed significant growth, with USD 1.1 billion in investments, a 46% increase from the previous year, driven primarily by domestic players.

City-wise Investment Inflows

Mumbai led the way in attracting real estate investments, with a 24% share of the total annual inflows amounting to USD 1.6 billion.
The office segment was the primary driver, accounting for 58% of the city's real estate investments, followed by industrial and warehousing assets at 20%.
Multi-city deals made up 39% of the total investments.
Bengaluru, Chennai, and Delhi NCR also saw steady investment inflows, each accounting for 8-9% of the total annual investments.

About Colliers

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With operations in 70 countries and 22,000 professionals, Colliers provides exceptional service and expert advice to clients.
For nearly 30 years, the company has delivered approximately 20% compound annual investment returns for shareholders.
Colliers' annual revenues exceed $4.5 billion, and it manages $99 billion in assets, maximizing the potential of property and real assets to accelerate the success of clients, investors, and people.
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Frequently Asked Questions

What was the total institutional investment in Indian real estate in 2024?

The total institutional investment in Indian real estate in 2024 was USD 6.5 billion.

Which segment dominated the real estate investment volumes in 2024?

The industrial and warehousing segment dominated the real estate investment volumes, capturing 39% of the total investment volume.

How much did the residential segment grow in 2024 compared to 2023?

The residential segment grew by 46% in 2024 compared to 2023, reaching USD 1.1 billion in investments.

What city led the real estate investments in India in 2024?

Mumbai led the real estate investments in India in 2024, with a 24% share of the total annual inflows amounting to USD 1.6 billion.

What is Colliers' role in the Indian real estate market?

Colliers is a leading global diversified professional services company that specializes in commercial real estate services, engineering consultancy, and investment management. It provides exceptional service and expert advice to clients in the Indian real estate market.