Kolkata / New Delhi, Jan 6 (FN Agency) Institutional investments in Indian real estate touched a remarkable USD 6.5 billion inflows in 2024, marking a substantial 22 per cent increase from the previous year’s USD 5.4 billion, a published data said on Monday. “ This surge reflects strong investor appetite for Indian real estate and marks an annual high for both domestic and foreign investments since 2020,” Colliers India CEO Badal Yagnik said. The fourth quarter of 2024 was particularly robust, with investments totaling USD 1.9 billion—2.3X times compared to the same period in 2023. This end-year momentum contributed significantly to higher investment volumes for 2024. Interestingly, domestic investments were significant in Q4 2024 and accounted for 43 pc of the inflows during the final quarter.
This underscores the growing confidence of India-based institutional investors alongside sustained interest from international counterparts. In 2024, the Industrial & warehousing segment accounted for the highest share in overall real estate investment volumes at 39%, surpassing the office segment. Manufacturing and industrial growth in the country was robust throughout 2024 and was reflected in the performance of macro-economic indicators such as Manufacturing Purchasing Managers Index (PMI) and Index of Industrial Production (IIP). At USD 1.1 billion, the residential segment too witnessed substantial growth, rising 46% compared to 2023 levels.
Overall, at USD 4.3 billion, foreign inflows continued to drive annual real estate investments at 66 pc share, while domestic investments too witnessed a steady rise, surging 27 pc YoY during the year. “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 USD 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. Looking ahead, Tier-I cities will continue to attract the majority of the capital, amidst government impetus on infrastructure development and ‘Make in India’ initiative. While global investors’ confidence is likely to remain upbeat, 2025 is likely to see increased capital deployment from domestic players across office, residential and industrial assets,” said Badal Yagnik.