Indian Real Estate Sector Experiences 22% Surge Reaching $6.5 Billion in 2024 with Increased Foreign Investments
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New Delhi, Jan 6 (NationPress) The institutional investments in Indian real estate have reached $6.5 billion in 2024, reflecting a significant 22% growth from last year's $5.4 billion, primarily driven by the industrial and warehousing sector, according to a report released on Monday.
Foreign investments continued to dominate the landscape, contributing $4.3 billion and accounting for 66% of total annual real estate investments, while domestic investments also saw a commendable rise of 27% throughout the year, as indicated by the report from Colliers India.
Mumbai emerged as a key player in this investment surge, attracting approximately $1.6 billion, which represented 24% of the total real estate investments in the nation last year. Other cities like Bengaluru, Chennai, and Delhi NCR maintained steady investment levels, each contributing about 8-9% of the total.
The last quarter of 2024 showcased particularly strong performance, with investment inflows reaching $1.9 billion, a remarkable 2.3 times increase compared to the same period in 2023.
Noteworthy is the contribution of domestic investments in Q4 2024, which constituted 43% of the total inflows during that period.
In terms of investment segments, the industrial and warehousing sector led the way, commanding the highest share at 39% of total real estate investments, surpassing the office sector.
The robust growth in manufacturing and industrial activities is evident from key macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP).
The residential sector also made a significant stride, attracting $1.1 billion in investments—a 46% increase compared to levels in 2023.
“Interestingly, investors from the APAC region were responsible for nearly one-third of the foreign inflows into the country's real estate market during the year. Looking forward, Tier-I cities are expected to capture the majority of investment capital, bolstered by government initiatives on infrastructure development and the ‘Make in India’ program,” stated Badal Yagnik, Chief Executive Officer of Colliers India.
As global investors maintain strong confidence, 2025 is anticipated to witness a rise in capital deployment from domestic entities across office, residential, and industrial sectors, Yagnik further noted.
The report highlights that the growing investments in the industrial and warehousing segments signify a healthy domestic market, improvements in logistics efficiency, and India’s evolving role as a global manufacturing hub. Notably, foreign investments accounted for over 80% of total inflows in this segment during the year.
The increasing demand for high-quality Grade A developments, along with the shifting dynamics of supply-chain models, is expected to further motivate investors in consolidating industrial and warehousing assets within the country, remarked Vimal Nadar, Senior Director and Head of Research at Colliers India.
