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Indian Real Estate Institutional Investments in 2024: A $6.5 Billion Milestone
The Indian real estate market reached a significant milestone in 2024, with institutional investments crossing $6.5 billion. This marks a 22% increase from 2023’s $5.4 billion, as per a report by Colliers India. The industrial and warehousing segment led the way, followed closely by the office segment, signaling a shift in investment priorities within the real estate sector.
Key Highlights of Institutional Investments in 2024
Overall Investment Growth
- Total Investments: $6.5 billion
- Year-on-Year Growth: 22% increase from $5.4 billion in 2023
Investment Breakdown by Segment
| Segment | Investment Volume | Percentage of Total |
|---|---|---|
| Industrial & Warehousing | $2.5 billion | 39% |
| Office Segment | $2.3 billion | 36% |
| Residential Segment | $1.1 billion | 17% |
Residential Segment Growth
- YoY Growth: 46% increase from 2023
- Contributing Factors: Rising demand for housing driven by robust domestic growth.
Regional Insights
| City/Region | Share of Investments | Segment Highlights |
|---|---|---|
| Mumbai | 24% | 58% in office assets; 20% in warehousing |
| Delhi-NCR | 9% | Strong industrial and office inflows |
| Bengaluru | 8% | Consistent office and industrial growth |
| Chennai | 8% | Steady warehousing investments |
Quarterly Trends
- Q4 2024:
- Investments reached $1.9 billion.
- Domestic investments accounted for 43% of the total inflows.
- Domestic Investment Growth:
- 27% YoY increase in 2024, reflecting growing confidence among Indian investors.
Factors Driving Growth in 2024
- Industrial & Warehousing Dominance:
- Attracted $2.5 billion, surpassing the office segment.
- Growth driven by rising demand for Grade A developments and advanced supply-chain models.
- Government Initiatives:
- Focus on infrastructure and the ‘Make in India’ initiative.
- Boost in manufacturing and industrial activity reflected in macroeconomic indicators like PMI and IIP.
- Foreign Inflows:
- Accounted for 66% of total investments, driven by APAC investors contributing nearly one-third of the inflows.
- Domestic Investment Momentum:
- Significant participation in Q4, highlighting growing interest from Indian institutional investors.
Expert Opinions
- Badal Yagnik, CEO, Colliers India:
“Indian realty investments in 2024 were the highest since 2020, buoyed by domestic growth and investor confidence. Tier-I cities will continue to attract capital in 2025.” - Vimal Nadar, Head of Research, Colliers India:
“The industrial and warehousing segment saw a record $2.5 billion inflows in 2024, driven by large-sized deals and rising demand for Grade A developments.”
Outlook for 2025
- Increased Domestic Investments:
- Greater participation from Indian investors across residential, office, and industrial segments.
- Tier-I Cities in Focus:
- Mumbai, Delhi-NCR, Bengaluru, and Chennai to remain key investment hubs.
- Sustained Growth in Industrial Assets:
- Manufacturing scale-up and evolving supply-chain models to drive demand.
Evantis Realty is a leading Real Estate Broker in Gurugram & Delhi NCR specializing in high-end properties across the city. With years of experience and a deep understanding of the market, Evantis Realty offers personalized service and expert advice to help clients navigate the dynamic Gurugram & Delhi NCR Real Estate Market with confidence.
