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Institutional investments in Indian real estate are set to surpass 2023 levels, with USD 4.7 billion invested in the first three quarters of 2024 alone, marking 87% of the previous year's total inflows. A report by Colliers attributes this growth to robust performance in office, industrial, warehousing, and residential sectors. The office sector is poised for record absorption, driven by global capability centres and domestic demand, while the residential market sees strong end-user sales. Increased domestic capital and investment from countries like Singapore, Canada, and the USA are boosting the sector. Redevelopment projects in the residential segment are particularly gaining traction.
Institutional investments in Indian real estate are set to exceed 2023 levels, bolstered by significant inflows into the office, industrial and warehousing, and residential sectors, according to a recent report by Colliers. By the end of the first three quarters of 2024, investments had reached USD 4.7 billion, representing 87% of the total inflows recorded throughout 2023. This strong momentum is expected to continue, setting the stage for promising institutional investments across all real estate asset classes in 2025. Advertisement
Colliers India's Managing Director for Capital Markets & Investment Services, Piyush Gupta, indicated that the office sector is on track to achieve record absorption, driven by demand from global capability centres (GCCs) and domestic players. He also highlighted the strong end-user sales in the residential market and a more diversified equity capital base, with domestic capital playing an increasingly important role.
The report also emphasised India's favourable position to attract institutional investments, supported by strong domestic economic growth. Countries such as Singapore, Canada, and the United States remain key investors in the Indian real estate market.
In the Asia-Pacific region, 68% of investors believe economic growth will positively influence real estate markets. Since 2021, institutional investments in India have totalled USD 19 billion, with annual volumes increasing steadily.
The office sector has contributed over 40% of inflows in the past four years, with industrial and warehousing, along with residential sectors, showing notable growth in recent years. Residential properties, particularly redevelopment projects, are also experiencing heightened interest from investors. This sustained growth across asset classes reflects the sector's resilience and adaptability to evolving market dynamics.
In conclusion, the surge in institutional investments in 2024 reflects India's growing appeal as a real estate investment destination. Strong domestic economic growth, diversification of equity capital, and increasing interest in redevelopment projects highlight the sector's resilience and potential. With sustained momentum across asset classes, India's real estate market is well-positioned to attract both domestic and foreign investments in the coming years.
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