NEW DELHI: Institutional investments in Indian real estate in 2024 are poised to surpass 2023 levels, driven by robust investments in office, industrial & warehousing, and residential sectors, according to a report by Colliers.
In the first three quarters of 2024 alone, investments have reached USD 4.7 billion, accounting for 87% of the inflows in the entire year of 2023. This momentum also sets a promising tone for institutional investments across real estate asset classes in 2025.
“The office sector is likely to have its best year in India, with record absorption fueled by GCCs and domestic demand. The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital,” said Piyush Gupta, managing director, Capital Markets & Investment Services, Colliers India.
Coupled with strong domestic economic growth prospects, India looks uniquely positioned to attract both domestic and foreign institutional investments in the coming years. Countries like Singapore, Canada, and the USA are the biggest investors in India’s real estate.
The report says that 68% of investors in the APAC region believe economic growth will help the real estate market. Since 2021, institutional inflows have totaled $19 billion, with investment volumes rising each passing year.
In the first three quarters of 2024 alone, investments have reached $4.7 billion, accounting for 87% of the inflows in the entire year of 2023.
While office assets have driven over 40% of inflows during the last four years (2021-24), both industrial and warehousing and residential sectors are now seeing accelerated momentum in recent years.
Residential properties are also seeing more investment, especially in redevelopment projects.
