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India's real estate investments jump 88% to $3 billion in H2 2024

#Taxation & Finance News#India
Last Updated : 21st Mar, 2025
Synopsis

India continued to strengthen its position in the Asia Pacific real estate market in the second half of 2024, recording an 88% annual increase in investments, totaling USD 3 billion, according to Colliers. The office sector led with a 47% share, followed by industrial and logistics at 27%. Mumbai attracted nearly half of these inflows due to strong demand for office assets. Institutional investments in India reached USD 6.5 billion in 2024, with further growth expected in 2025, supported by monetary easing and economic stability. Overall, India remains a key destination for domestic and international real estate investors.

India maintained its strong position in the Asia Pacific real estate market, with the latter half of 2024 marking a significant uptick in investment activity. As per Nasdaq-listed consultancy Colliers, India registered an 88 per cent annual rise in real estate investments, amounting to USD 3 billion. The office sector accounted for the largest share at 47 per cent, followed by the industrial and logistics segment, which contributed 27 per cent.


Mumbai emerged as a key investment hub during this period, drawing nearly half of the total capital inflows, largely due to heightened demand for office assets, as highlighted in Colliers' 'Asia Pacific Investment Insights H2 2024' report.

Colliers India's Chief Executive Officer, Badal Yagnik, noted that institutional investments in Indian real estate grew by 22 per cent in 2024, reaching USD 6.5 billion. Yagnik expressed confidence that this upward trend is set to persist through 2025, fuelled by positive economic prospects and favourable investment sentiment. He also indicated that a likely continuation of monetary easing, including potential cuts in the repo rate, could further improve liquidity and stimulate transaction activity across various real estate segments next year.

Echoing this sentiment, Vimal Nadar, Senior Director and Head of Research at Colliers India, remarked that India's consistent growth in investment volumes reinforces its position as a key destination for both domestic and international capital. Nadar added that while global investors are expected to keep diversifying their real estate portfolios, domestic investors will likely increase their presence in high-yield sectors such as office and industrial & warehousing.

Regionally, Asia Pacific saw real estate investments grow by 12 per cent year-on-year, reaching USD 155.9 billion in 2024. The region's major markets, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan, continued to demonstrate resilience.

Colliers anticipates that real estate investment volumes across Asia Pacific will remain robust through 2025, supported by moderating inflation, stable economic growth, and declining borrowing costs in key markets.

India's robust performance within the Asia Pacific real estate landscape signals growing confidence among investors, both local and international. The ongoing demand for office and logistics assets, particularly in Mumbai, underscores the resilience of India's commercial property market amid global economic uncertainties. With expectations of monetary easing and strong macroeconomic fundamentals, India is poised to attract further investment inflows in 2025. The country's upward trajectory aligns with broader regional trends, where favourable conditions across major Asia Pacific markets are likely to sustain investment momentum in the coming year.

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