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Institutional investments in Indian real estate soared by 51% in 2024 to a record USD 8.87 billion, surpassing the 2007 peak, according to JLL India. Foreign investors contributed 63% of inflows, while domestic participation rose to 37%, reflecting growing local interest. The residential segment led with 45% of investments, followed by office spaces (28%) and warehousing (23%). REITs attracted USD 800 million, tripling 2023 levels. Despite a 17% dip in office investments, Qualified Institutional Placements (QIPs) are expected to drive future capital raising. Robust demand and strong economic performance have positioned Indian real estate as a global investment hotspot.
Institutional investments in the Indian real estate sector surged by 51% in 2024, reaching a record USD 8.87 billion, driven by strong demand across residential, office, and warehousing segments, as reported by JLL India. This marks the highest-ever recorded investment, surpassing the 2007 peak of USD 8.4 billion. Advertisement
Foreign institutional investors accounted for 63% of the total capital inflow. Among asset classes, the residential segment led with 45% of the investments, followed by office spaces at 28% and warehousing properties at 23%. Deal activity increased substantially, with the number of transactions rising by 47% compared to the previous year.
Lata Pillai, Senior Managing Director and Head of Capital Markets at JLL India, attributed the growth to strong economic performance, political stability, and varied investment opportunities. She noted the increasing involvement of domestic investors since 2023, with their share rising to 37% in 2024 from an average of 19% during 2019-2022.
REITs in India experienced remarkable growth, with investments nearing USD 800 million, over three times the 2023 levels. The report also highlighted a shift in focus towards the residential segment, which attracted significant investor attention, while investments in office spaces witnessed a 17% decline compared to 2023. Pillai remarked that Qualified Institutional Placements (QIPs) are likely to play a pivotal role in capital raising in the near future, as the market anticipates new entrants.
The year 2024 proved to be a landmark for Indian real estate, with institutional investments achieving unprecedented growth. The residential segment emerged as a major beneficiary of this capital influx, reflecting changing investor preferences. With REITs gaining momentum, a strong mix of domestic and foreign investments, and the promise of QIPs on the horizon, the outlook for Indian real estate remains robust, positioning it as a significant player in the global market.
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