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Institutional investments in Indian real estate soared to USD 6.5 billion in 2024, a 22% year-on-year increase, according to Colliers India. The industrial and warehousing sector led the growth, attracting USD 2.5 billion-39% of total inflows-highlighting India's rising status as a manufacturing hub. The office segment captured 36% of investments, reflecting sustained demand for quality commercial assets. Mumbai accounted for 24% of the total, with multi-city deals contributing 39%. Domestic investors made up 43% of Q4 inflows, underscoring growing local confidence. This strong performance signals Indian real estate's resilience and its appeal to both domestic and global institutional investors.
Institutional investments in Indian real estate reached a notable USD 6.5 billion in 2024, reflecting a 22% increase from USD 5.4 billion in 2023, as per a Colliers India report. This growth highlights heightened investor confidence in the sector, achieving an annual peak for domestic and foreign investments since 2020. The fourth quarter of 2024 stood out, with inflows amounting to USD 1.9 billion-2.3 times higher than the same period in 2023. This robust quarter played a critical role in driving the year's overall investment performance. Domestic investors significantly contributed, accounting for 43% of Q4 2024 inflows, signaling increased confidence from local institutional players, alongside continued interest from global investors. Advertisement
The industrial and warehousing sector emerged as the top performer, with investments nearly tripling those in 2023 to reach USD 2.5 billion, representing 39% of total inflows. This surge underscores India's growing prominence as a manufacturing hub and improved logistics infrastructure. Foreign capital dominated this segment, contributing over 80% of the total investment. The office segment followed closely, capturing 36% of the year's inflows, further indicating its resilience and demand for high-quality commercial assets.
Multi-city deals represented 39% of the total investments in 2024, with Mumbai leading individual city performance by attracting USD 1.6 billion, or 24% of total real estate investments. Office assets accounted for 58% of Mumbai's share, driven by investments in developmental projects, while industrial and warehousing assets constituted 20%. Other major cities, including Bengaluru, Chennai, and Delhi NCR, collectively accounted for 8-9% of the annual investments each, reflecting steady interest across diverse urban centers.
Alternate assets experienced limited inflows during Q3 2024, while retail and mixed-use assets also saw subdued investments, particularly in Q4 2023 and Q3 2024. These trends indicate a shift in investor priorities toward high-growth segments such as industrial and warehousing.
Institutional funding sources included family offices, foreign corporate groups, banks, proprietary books, pension funds, private equity, real estate developers, listed REITs, and sovereign wealth funds. The compiled data is based on publicly available information, providing a comprehensive overview of the sector's investment landscape.
The growing appeal of industrial and warehousing assets reflects increasing domestic economic activity and India's enhanced manufacturing and logistical capabilities. Meanwhile, the strong momentum in office asset investments underscores sustained demand for urban commercial infrastructure. Together, these trends position Indian real estate as a compelling choice for both domestic and international investors, driving its resilience and growth in 2024.
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