Gurgaon (Haryana) [India], January 6 : Institutional investments in Indian real estate reached a five-year high of USD 6.5 billion in 2024, marking a 22 per cent year-on-year (YoY) growth from USD 5.4 billion in 2023, according to Colliers report.
The industrial and warehousing segment emerged as the top contributor, attracting USD 2.5 billion in investments, a staggering 190 per cent increase compared to 2023. This accounted for 39 per cent of the total inflows, surpassing the office segment, which garnered USD 2.3 billion or 36 per cent of the total.
Robust manufacturing growth, improvements in logistics infrastructure, and India's positioning as a global manufacturing hub drove this momentum. Notably, over 80 per cent of the industrial and warehousing inflows were from foreign investors.
The residential segment also performed well, recording USD 1.1 billion in investments, a 46 per cent YoY rise. This growth was primarily driven by strong domestic demand.
Meanwhile, mixed-use assets saw an impressive 822 per cent increase in inflows, underscoring evolving investment trends in Indian real estate.
Domestic investors played a significant role in 2024, contributing nearly one-third of the total inflows, which rose by 27 per cent YoY. The fourth quarter of 2024 was particularly strong, with investments totaling USD 1.9 billion, more than double the inflows in Q4 2023.
During this quarter, domestic investments accounted for 43 per cent of the total, reflecting heightened confidence among Indian investors alongside steady interest from international players.
Foreign inflows continued to dominate, contributing 66 per cent of the total investments. Investors from the Asia-Pacific region accounted for nearly one-third of these foreign inflows, showcasing India's growing appeal in the global real estate market.
Mumbai attracted the highest share of real estate investments in 2024, with USD 1.6 billion, representing 24 per cent of the total inflows. The office segment led Mumbai's investments, comprising 58 per cent of the city's total, followed by industrial and warehousing assets, which accounted for 20 per cent.
Bengaluru, Chennai, and Delhi NCR also attracted significant investments, accounting for 8-9 per cent of the total inflows each. Other cities, including Hyderabad, Pune, and Kolkata, showed strong YoY growth in investments, particularly in the industrial and warehousing segment.
Multi-city deals accounted for 39 per cent of the total investments in 2024, indicating a balanced spread of capital across India's major real estate markets.
Badal Yagnik, Chief Executive Officer, Colliers India, said, "APAC investors drove almost one-third of the foreign inflows in the country's real estate during the year. Looking ahead, Tier-I cities will continue to attract majority of the capital, amidst government impetus on infrastructure development and 'Make in India' initiative. While global investors' confidence is likely to remain upbeat, 2025 is likely to see increased capital deployment from domestic players across office, residential and industrial assets."
Vimal Nadar, Senior Director & Head of Research at Colliers India, said, "Manufacturing scale-up and healthy consumption levels are likely to attract domestic and global investments in both ready-to-use as well as developmental industrial assets, going ahead."