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Institutional investments in Indian real estate surged 88% to $3 billion in H2 2024, with Mumbai securing the largest share. Outlook for 2025 remains strong.

a booming real estate market indias investment 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 emerged as the primary beneficiary attracting nearly half of the total investments in h2 2024 largely driven by the acquisition of office assets according to colliers latest report titled asia pacific investment insights h2 2024 office assets dominated investment inflows securing a 47 share followed by industrial and logistics at 27 and residential at 17 badal yagnik chief executive officer of colliers india stated that institutional investments in indian real estate saw a significant rise with total capital inflows reaching 6 5 billion in 2024 reflecting a 22 increase he further emphasized that this momentum is likely to persist into 2025 fueled by positive economic growth prospects and strong investor confidence the expected continuity in monetary policy easing including potential repo rate reductions is anticipated to enhance liquidity and drive transactional activity across real estate segments in 2025 with diverse investment opportunities and proactive government policies supporting substantial capital deployment across core and non core assets the report highlighted that the office segment attracted 1 442 million in investments during h2 2024 marking a staggering 571 increase from 215 million in the same period last year peush jain managing director of commercial leasing and advisory at anarock group noted that indias office market is positioned for positive growth in 2025 driven by global economic recovery particularly within the technology sector demand for office spaces in major metropolitan cities is expected to rise significantly building on the market equilibrium established in late 2024 the residential segment also experienced robust growth garnering 503 million in investments during h2 2024 a 41 increase from 356 million in the previous year ankur jalan ceo of golden growth fund a cat ii real estate focused alternative investment fund noted that rising affluence and aspirational home ownership combined with strong infrastructure growth and economic expansion are propelling housing demand he highlighted that with the newly formed government in delhi the nda administrations double engine growth model is expected to further drive real estate investments particularly in south delhi attracting more institutional and alternative investment funds garvit tiwari co founder of inframantra emphasized that the increasing investment flow into indian real estate underscores the countrys strong position among global markets with solid mid to long term growth prospects high consumption demand has fueled the demand for residential and commercial properties in major metropolitan areas a trend that is expected to strengthen in the coming years in h2 2024 foreign investments accounted for 57 of total inflows while domestic investments stood at 1 3 billion reflecting an 8 year on year growth vimal nadar senior director and head of research at colliers india pointed out that the steady growth in investment volumes reaffirms indias status as a key destination for both domestic and foreign real estate investments he predicted that investment inflows from the asia pacific region would remain strong in 2025 constituting a significant share of institutional investments in india looking ahead global investors are expected to continue diversifying their real estate portfolios while domestic investors will likely focus on high yield segments such as office and industrial warehousing the report further noted that real estate investments across the asia pacific market grew by 12 year on year reaching 155 9 billion in 2024 south korea japan and mainland china accounted for 59 of the total 83 2 billion investments recorded in h2 2024 meanwhile india south korea taiwan and australia experienced notable investment growth each exceeding 30 year on year increases during the period overall real estate investment volumes in the asia pacific region are expected to remain strong in 2025 supported by easing inflation healthy economic growth prospects and declining borrowing costs across major markets according to the colliers report

India's Real Estate Investments Surge 88% Reaching $3B in H2 2024

Real Estate Investments Surge 88% in H2 2024

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 <a href="https://www.colliers.com">Colliers</a>, highlights a strong investor sentiment, underpinned by economic growth and policy-driven support. 

<h2>Mumbai: The Epicenter of Growth</h2> 
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 <a href="https://www.colliers.com/en-in">Badal Yagnik</a>, 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. 

<h2>Office Assets Dominate Investments</h2> 
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 <a href="https://www.anarock.com">Peush Jain</a>, 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.” 

<h2>Residential Market Gains Momentum</h2> 
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. 
<a href="https://www.goldengrowthfund.com">Ankur Jalan</a>, 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.” 

<h2>Foreign Investments Fuel Growth</h2> 
Foreign capital played a pivotal role, constituting 57% of total inflows, while domestic investments grew 8% year-over-year to $1.3 billion. 
<a href="https://www.colliers.com/en-in">Vimal Nadar</a>, 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.” 

<h2>Asia-Pacific Real Estate Trends</h2> 
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. 

<h2>The Road Ahead: 2025 and Beyond</h2> 
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.

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

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