Indian Real Estate Investments Soar 88% in H2 2024, Mumbai Leads Surge

The Indian real estate sector witnessed an extraordinary upswing in the latter half of 2024, marking an 88% growth in institutional investments, soaring to $3.03 billion from $1.61 billion in H2 2023. This surge, as reported by Colliers, highlights a strong investor sentiment, underpinned by economic growth and policy-driven support.

Mumbai: The Epicenter of Growth

Among the major cities, Mumbai emerged as the frontrunner, securing nearly half of the total investments. The office asset segment led the way, accounting for 47% of total investments, followed by industrial & logistics (27%) and residential (17%).

According to Badal Yagnik, CEO of Colliers India, the real estate momentum is set to continue in 2025, driven by favorable economic conditions and liquidity-enhancing monetary policies.

“With further reductions in the repo rate, transactional activities across all segments will likely intensify,” Yagnik stated.

Office Assets Dominate Investments

The office real estate market experienced an unprecedented 571% surge in H2 2024, attracting $1.44 billion, up from $215 million in the previous year.

According to Peush Jain, Managing Director at ANAROCK Group:

“The Indian office market is poised for robust growth in 2025, fueled by global economic recovery, particularly in the technology sector. The demand for office spaces in top seven metro cities will continue its upward trajectory.”

Residential Market Gains Momentum

The residential sector also saw a 41% increase, drawing $503 million in investments. Rising urban affluence, improved infrastructure, and increasing aspirations have contributed to this growth.

Ankur Jalan, CEO of Golden Growth Fund, attributes this demand to sustained economic expansion and a government-backed growth model.

“Delhi, particularly South Delhi, is witnessing increased investments from Alternative Investment Funds (AIFs), signaling a long-term upward trend.”

Foreign Investments Fuel Growth

Foreign capital played a pivotal role, constituting 57% of total inflows, while domestic investments grew 8% year-over-year to $1.3 billion.

Vimal Nadar, Senior Director of Research at Colliers India, emphasized:

“India’s real estate sector continues to be a top investment destination for both domestic and international investors. APAC investments will remain strong in 2025, ensuring steady capital inflows.”

Asia-Pacific Real Estate Trends

Real estate investments across Asia-Pacific increased 12% YoY to reach $155.9 billion in 2024. Countries like South Korea, Japan, and Mainland China accounted for 59% of the total $83.2 billion investment in H2 2024.

India, along with South Korea, Taiwan, and Australia, recorded over 30% year-on-year growth, showcasing the region’s resilience amidst declining borrowing costs and healthy economic prospects.

The Road Ahead: 2025 and Beyond

With a stable economic outlook, proactive government policies, and enhanced liquidity, India’s real estate sector is poised for continued growth in 2025.

As global investors seek high-yield opportunities, domestic investors are expected to expand their footprint in office, industrial, and warehousing sectors. The positive sentiment in India’s property market positions it as a strong contender for long-term capital growth.