How much investment did Indian real estate attract in 2023?

Indian Real Estate Institutional Investments in 2023

Indian real estate witnessed USD 5.4 billion in institutional investments in 2023, reflecting a 10% year-over-year (YoY) increase. This strong showing is attributed to various factors, including regulatory reforms, steady economic growth, and robust demand across commercial and residential segments. Projects aligned with RERA (Real Estate Regulation and Development Act) have gained considerable traction among both domestic and foreign investors.

Foreign investors accounted for 67% of total inflows, underscoring India’s position as a go-to market within the Asia-Pacific region. Interestingly, domestic investments also surged—rising 66% compared to the previous year—reaching USD 1.7 billion. This upswing indicates growing confidence among local high-net-worth individuals, family offices, and institutional funds, who now view real estate as a stable and rewarding asset class.

Key Drivers of Growth

• Grade A office spaces: Claimed 44% of total institutional investments, reflecting the high demand for IT and corporate leasing.
• Industrial and warehousing: Contributed 16%, buoyed by e-commerce expansion and manufacturing initiatives like Make in India.
• Residential: Stood at 15%, with renewed interest in homeownership.
• Alternative assets: Around 12%, spanning data centers, co-living, and senior housing.

Future Outlook

Looking ahead, experts predict that India’s real estate investments could reach USD 1.5 trillion by 2034, contributing 10.5% to India’s GDP. This expansion is supported by rapid urbanization, increasing infrastructure development, and government-backed reforms designed to boost transparency and protect consumer rights.