Real Estate Investment Rises To $6.5Bn In 2024; Industrial And Warehousing Dominates

Marking significant growth, the Indian real estate sector garnered an institutional investment of 6.5 billion dollars in 2024, registering a notable progress of 22 percent from the previous year.

This marks the highest annual inflow for both domestic and foreign investment since 2020, highlighting strong investor appetite for Indian real estate.

The fourth quarter saw an influx of 1.9 billion dollars as an investment, witnessing 2.3 times growth than the same period in 2023.

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Domestic inflow accounts for 43% of the institutional investment into the sector, illustrating increased confidence of domestic buyers along with continued interest from foreign.

Institutional investment into manufacturing and warehousing registered remarkable growth in 2024, marking 2.3 times.  The industrial and Warehousing segment stood at the top in total inflow into real estate, attracting 2.5 billion dollars translating to 39% of total investment. The office sector closely followed Industrial and warehousing with 36% of the 6.5 billion dollar influx into realty.

In 2024, the Industrial & warehousing segment accounted for the highest share of overall real estate investment volumes at 39%, surpassing the office segment. Manufacturing and industrial growth in the country was robust throughout 2024 and was reflected in the performance of macroeconomic indicators such as the Manufacturing Purchasing Managers Index (PMI) and the Index of Industrial Production (IIP). At $1.1 billion, the residential segment too witnessed substantial growth, rising 46% compared to 2023 levels.

Investment in the office segment picked the pace in the second half of 2024 followed by subdued activity in the first few quarters. The segment drew 2.3 billion dollars in investment. Foreign investment accounted for 77% of the total inflow into the office sector.

While multi-city deals corresponded to an overall 39% share, Mumbai, with about $ 1.6 billion in inflows accounted for 24% of the real estate investments in the country during 2024. At 58%, the office segment attracted the majority of the annual inflows in the city on account of investment in select developmental assets. This was followed by industrial & warehousing assets which accounted for 20% of the real estate investments in Mumbai during 2024. Investment inflows in Bengaluru, Chennai, and Delhi NCR also remained steady and accounted for an 8-9% share each during the year