Institutional Real Estate Investments in India Reaches $6.5 Billion in 2024, Industrial and Warehousing Lead the Way
In 2024, institutional real estate investments in India surged to $6.5 billion, a 22% increase from the previous year. The industrial and warehousing sectors dominated, accounting for 39% of the total investments, followed closely by the office segment at
Real EstateInstitutional InvestmentsIndian MarketIndustrial And WarehousingOffice SegmentReal Estate MumbaiJan 06, 2025
This surge in investments reflects strong domestic growth and sustained investor confidence.
The industrial and warehousing segment attracted $2.5 billion in investments, accounting for 39% of the total inflows.
This was closely followed by the office segment, which captured 36% of the investments.
The robust growth in manufacturing and industrial sectors, as reflected in macroeconomic indicators like the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP), played a crucial role in this increase.
The residential segment also saw substantial growth, with $1.1 billion in investments, rising 46% compared to 2023 levels.
Foreign inflows continued to drive annual real estate investments, contributing $4.3 billion or 66% of the total.
Domestic investments also saw a steady rise, surging 27% year-over-year.
The fourth quarter of 2024 was particularly robust, with investments totaling $1.9 billion, which is 2.3 times the amount in the same period in 2023.
Notably, domestic investments accounted for 43% of the inflows during this quarter, underscoring the growing confidence of India-based institutional investors.
“Private equity investments in Indian real estate have witnessed strong momentum in 2024, buoyed by robust domestic growth and sustained investor confidence.
With a record $6.5 billion inflows in 2024, Indian realty investments have been the highest since 2020.
Interestingly, APAC investors drove almost one-third of the foreign inflows in the country’s real estate during the year,” said Badal Yagnik, Chief Executive Officer of Colliers India.
He added that Tier-I cities will continue to attract most of the capital, supported by government initiatives like ‘Make in India’ and infrastructure development.
Mumbai led the way in annual inflows, with a 58% share in office assets.
The city saw about $1.6 billion in real estate investments, accounting for 24% of the country's total real estate investments in 2024.
Industrial and warehousing assets also accounted for 20% of the real estate investments in Mumbai.
Investment inflows in Bengaluru, Chennai, and Delhi NCR were also steady, each accounting for an 8-9% share during the year.
“The year 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 $2.5 billion inflows, large-sized deals drove industrial and warehousing investments in 2024,” said Vimal Nadar, Senior Director and Head of Research at Colliers India.
He further added that rising demand for superior quality Grade A developments and evolving supply-chain models will continue to incentivize investors to consolidate industrial and warehousing assets in the country.
Manufacturing scale-up and healthy consumption levels are likely to attract domestic and global investments in both ready-to-use and developmental industrial assets going forward.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in 2024?
In 2024, institutional investments in Indian real estate reached $6.5 billion, marking a 22% increase from the previous year.
Which segment of real estate investment saw the highest growth in 2024?
The industrial and warehousing segment saw the highest growth, accounting for 39% of the total investments with $2.5 billion inflows.
How much did the residential segment grow in 2024?
The residential segment grew by 46% compared to 2023, with investments totaling $1.1 billion.
What was the share of foreign and domestic investments in 2024?
Foreign inflows accounted for 66% of the total investments, with $4.3 billion, while domestic investments rose 27% year-over-year.
Which city led in real estate investments in 2024?
Mumbai led the way with a 58% share in office assets and accounted for 24% of the country's total real estate investments, totaling about $1.6 billion.
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