Foreign Investment In Indian Real Estate Soars In 2024; Led by Singapore, US, And Canada

Private equity investment in India’s real estate sector has seen significant growth, with foreign participation playing a key role in this surge. In 2024, foreign investors from Singapore, the United States, and Canada together contributed over 25% of the sector’s record private equity inflows, which totaled $11.4 billion, according to CBRE, a global property consultancy.

Among the top contributors, Singapore emerged as the largest investor, accounting for 36% of foreign equity investments in Indian real estate. The United States followed closely with 29%, while Canada made up 22%.

Anshuman Magazine, Chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa, highlighted the expected sustained momentum in investment activity. “We anticipate strong growth, especially in built-up office assets and residential development sites. Additionally, the booming e-commerce and quick-commerce sectors are driving growth in logistics and warehousing, creating new opportunities for developers and investors alike,” he stated.

Private Equity Investments Rise 54% Year-On-Year

Private equity investments in Indian real estate saw a remarkable 54% increase from the previous year, signaling rising investor confidence in the sector. CBRE’s South Asia report attributed this growth to favorable economic conditions and strategic capital deployment across key asset classes. The report also noted a rise in investments from the UAE, further contributing to the influx of capital.

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Domestic investors continued to dominate, accounting for about 70% of the total equity inflows in 2024. This balance of foreign and domestic investment highlights the robust growth potential of the Indian real estate market.

Developers and Institutional Players Lead Investments

Developers were the biggest recipients of capital, capturing 44% of the total equity investments in 2024. Institutional investors followed with 36%, while corporations and Real Estate Investment Trusts (REITs) accounted for 11% and 4%, respectively. Other categories made up the remaining 5%.

Land and development sites were the most sought-after asset class, receiving 39% of total equity inflows. Office spaces followed at 32%, with retail, residential, and industrial/logistics assets receiving 9%, 8%, and 6%, respectively.

Emerging Sectors Attracting Attention

Jasmeet Singh Chhabra, co-founder of JV Ventures, noted that alternative assets such as educational infrastructure and life sciences are becoming increasingly attractive to global investors. These sectors are expected to see higher investment due to substantial growth potential and a gap in quality supply. The rise of asset-light models and the introduction of SM REITs are further encouraging investment in these areas.

Mumbai and Delhi-NCR remain the most attractive destinations for real estate investment, each accounting for 25% of the total equity inflows in 2024. Bengaluru secured the third spot with 14%, followed by Chennai and Hyderabad at 8% and 6%, respectively.

The industrial and logistics sector is expected to see accelerated investment, driven by the rising demand from e-commerce, logistics, and manufacturing industries for high-quality assets. Ankit Samdariya, Managing Director at Logos Asia, emphasized that this sector continues to attract significant interest from both global capital and Indian family offices. He cited favorable policies and rapid infrastructure development as key factors fueling this trend.

Strong Finish To 2024, Positive Outlook For 2025

The final quarter of 2024 saw a 91% year-on-year growth in equity investments, with $2.5 billion in capital inflows. Experts predict that investment activity will continue on a positive trajectory into 2025.

Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, forecasted continued growth in real estate development, supported by strong demand for office, residential, mixed-use, and industrial spaces. Sectors like retail and hospitality expect to attract renewed interest.

Sharad Mittal, founder and CEO of Arnya Real Estates Fund Advisors, pointed out that residential projects and Grade A commercial office spaces will remain key drivers of investment in 2025. Although Tier-I cities will continue to dominate, some Tier-II cities are also becoming increasingly attractive to investors.

With sustained confidence from investors, evolving market dynamics, and a strong development pipeline, India’s real estate sector is poised for continued growth in the coming years.