Indian Real Estate Institutional Investments Hit All-Time High In 2024

The year 2024 saw the real state sector experiencing unprecedented momentum, driven by evolving market dynamics. The sector has attracted institutional investments of $ 8.8 billion across deals.

The growth is a reflection of the sector’s resilience and attractiveness to global investors, who are increasingly drawn to India’s expanding real state market. Among different asset classes, the segment that attracted almost half of the inflows was the residential segment. This was followed by office buildings at 28% and warehousing properties at 23% among others, as reported.

Highest Indian Institutional Investment

As per one of the leading real estate agencies JLL India, the estimated institutional investment in Indian real estate is at $8.878 billion in 2024 compared to $5.878 billion in the preceding calendar year.

Meanwhile, this figure stands as the highest on record, eclipsing the 2007 peak of $8.4 billion and represents a substantial 51% increase from the previous year’s $5.8 billion. With this, the year also saw an increase in the number of deals by 47%.

Residential Segment Dominates Real Estate

Detailing about this, Samantak Das, Chief Economist and Head of Research and REIS, India, JLL said, “The residential sector has emerged as a standout performer, attracting more than $4 billion across 49 deals, marking a 4-fold increase from the previous year and outpacing the office sector by 63% in transaction volume.

Notably, domestic investors gravitated towards residential properties, while foreign investors maintained their preference for office and warehousing assets.”

In 2024, office investments have faced a notable downturn, seeing a 17% decrease compared to the previous year, 2023. Despite this decline, the sector still managed to draw in substantial investment, totalling $2.5 billion across 18 deals.

A significant 61% of these transactions were concentrated on core assets, highlighting continued investor interest in prime, stable properties, even amid broader market challenges.

Moreover, Foreign institutional investors remain a dominant force in the landscape, accounting for 63% of the total investments. Their strong presence underscores the sector’s global appeal, with government initiatives aimed at enhancing transparency and accountability in real estate playing a key role in boosting investor confidence.

These efforts have contributed to a more stable and attractive investment environment, encouraging sustained foreign interest.

Meanwhile, Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL, said, “Strong growth, political stability, and diverse investment opportunities positioned India favourably in the global economic context.” She also emphasised the domestic domiciled investors since 2023 and this trend appears to continue in 2024.

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