Institutional investments in Indian real estate reached $ 6.5 billion (bn) in 2024, marking a 22 per cent year-on-year growth from $ 5.4 bn in 2023, according to Colliers India. This represents the highest annual inflow in five years, driven by both domestic and foreign investors.

The industrial and warehousing segment dominated the market, attracting $ 2.5 billion, which accounted for 39 per cent of the total inflows. The office segment followed closely with $ 2.3 bn, primarily led by foreign investors. Residential investments also showed robust growth, rising by 46 per cent year-on-year (Y-o-Y) to $1.1 bn.

Domestic investments surged by 27 per cent in 2024, contributing to one-third of the total inflows. Notably, in the fourth quarter, domestic investors accounted for 43 per cent of the $ 1.9 bn inflows, which were 2.3 times higher than the same quarter in 2023.

Mumbai retained its top spot, attracting 24 per cent of the total investments in 2024. Foreign investments accounted for 66 per cent of the overall inflows, with APAC investors contributing significantly.

“Private equity investments in Indian real estate have shown strong momentum in 2024, driven by robust domestic growth and sustained investor confidence," said Badal Yagnik, CEO of Colliers India. "Tier-I cities will remain attractive in 2025, supported by infrastructure development and the 'Make in India' initiative. Domestic players are also expected to increase their focus on office, residential, and industrial assets.”

The government’s emphasis on manufacturing and industrial growth, reflected in key indicators like the Manufacturing PMI and IIP, played a pivotal role in boosting investment in the industrial and warehousing segment. With both domestic and international investors showing increased confidence, Indian real estate is poised for continued growth in 2025.