Business

India’s Real Estate Investments Surge In H2 2024; Reaches $3 Billion

India’s real estate sector showed remarkable momentum in the second half of 2024, with a staggering 88% year-on-year rise in investments, totaling $3 billion.

This surge is part of a broader positive trend across the Asia Pacific (APAC) region, where real estate investments increased by 12% to $155.9 billion in 2024.

The Indian market stood out, with office assets remaining the primary focus for investors, accounting for 47% of the total investments.

Industrial and logistics assets followed closely, representing 27% of the investment share.

Mumbai emerged as a significant investment hub, attracting nearly half of the total capital inflow, primarily driven by the acquisition of office assets.

The Indian real estate market has become a major player in the broader APAC region, which saw a 12% increase in real estate investment in 2024, with India, South Korea, Taiwan, and Australia experiencing notable growth.

Real Estate Market Trends & Investor Sentiment

The top nine APAC markets, including India, accounted for most of the regional investments.

Countries such as South Korea, Japan, and Mainland China saw significant inflows, representing 59% of the total $83.2 billion invested in H2 2024.

India’s real estate market also displayed resilience, with substantial growth in both domestic and foreign investments.

In H2 2024, foreign investments accounted for 57% of total inflows, while domestic investments rose by 8% year-on-year, reaching $1.3 billion.

The continued dominance of office and industrial assets has shaped the investment landscape.

These segments together accounted for around 60% of all investments in H2 2024.

In addition, the retail sector experienced a rebound, with investments rising by 31% year-on-year, reaching $15 billion.

Australia and South Korea also reported inflows exceeding $3 billion in the retail segment, signaling renewed investor confidence.

Outlook For 2025: Continued Growth & Favorable Economic Conditions

Colliers India’s report, Asia Pacific Investment Insights H2 2024, highlighted the robust growth in institutional investments in India.

Capital inflows surged 22% in 2024, reaching $6.5 billion, and will likely maintain momentum into 2025.

Favorable economic growth projections and easing monetary policy, including further repo rate reductions, are expected to boost liquidity and drive transactional activity across various real estate segments.

Badal Yagnik, CEO of Colliers India, remarked, “The momentum seen in India’s real estate market is expected to continue in 2025, driven by strong economic growth prospects and the ongoing supportive policy environment.”

Domestic and foreign investors are likely to continue focusing on high-yield segments like office spaces and industrial & warehousing, contributing to India’s position as a leading real estate investment destination.

Vimal Nadar, Senior Director and Head of Research at Colliers India emphasized, “Steady growth in investment volumes underscores India’s prominence as a preferred investment destination.

As we look ahead, global and domestic investors will play a pivotal role in shaping India’s real estate market.”

India’s real estate market continues to demonstrate solid growth, backed by strong investor sentiment and an improving economic outlook.

The expected continuation of favorable policies and the easing of monetary conditions in 2025 will further bolster India’s attractiveness as an investment destination in the APAC region.

Also Read: Government’s Major Family Pension Reforms: Women-Friendly Changes To Ensure Financial Security

Anamika Agarwala

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