The Indian real estate and infrastructure ecosystem is no longer playing catch-up on risk—it's architecting resilience into the core of its growth model. ICICI Lombard’s Corporate India Risk Index 2024 reveals that the Infra & Realty sector is not just responding to uncertainty but embedding foresight, tech adoption, and ESG priorities into real estate fundamentals. In a climate shaped by inflation, elections, and shifting capital flows, this is not a trend—it's survival strategy turned into a competitive edge.
Infra & Realty Shows Improved Risk Handling in Volatile Times
The Infrastructure & Realty sector’s Risk Index improved notably from 60 in 2023 to 64 in 2024, according to the fifth edition of the ICICI Lombard Corporate India Risk Index (CIRI), conducted with Frost & Sullivan. This jump marks a shift from "sub-optimal" to "optimized" risk handling, driven by better preparedness, digitized project management, and a growing alignment with sustainability metrics.
Risk management scores also ticked upward, from 68 to 69, reflecting an industry increasingly adept at scenario planning, regulatory navigation, and hedging inflationary pressures—particularly important in a year marked by global economic softening and electoral flux at home.
Green Capital and Urban Demand Propel Strategic Shifts
As institutional capital becomes more ESG-sensitive, developers are moving beyond compliance to actively design green-certified, resilient assets. This aligns with India's commitment to renewable energy targets and low-carbon urbanization. From greenfield smart cities to redevelopment projects in Tier II markets, risk-readiness is now a driver of deal flow, not just an operational safeguard.
The report also highlights that strong public and private investment—spurred by schemes like PM Gati Shakti and the National Infrastructure Pipeline—is reshaping logistics, transport, and digital infra in ways that reduce long-term asset risk while enhancing regional connectivity.
Commercial Real Estate: Holding Ground Amidst Headwinds
While global macroeconomic trends threatened CRE (Commercial Real Estate) performance, India's domestic demand has proven resilient. Leasing from IT, pharma, and BFSI players helped sustain demand in 2024. Even as foreign capital flows slowed, domestic REITs, corporate leasebacks, and build-to-suit models expanded. Developers with diversified portfolios and digital monitoring tools managed cost escalation better than legacy operators.
Importantly, AI and digital twins—previously buzzwords—have become embedded in project lifecycle management, enabling predictive maintenance and asset optimization.
Residential Surge Powered by Risk-Aware Expansion
Urban housing demand, especially in affordable and premium segments, surged during the past fiscal year, driven by rising disposable income, favorable interest rates, and evolving lifestyle needs. Developers have responded by implementing smarter financial structuring, integrating project insurance, and diversifying material sourcing to reduce dependency on imports and manage supply chain shocks.
Yet structural issues—such as land acquisition challenges, regulatory lags, and inflation-linked project delays—remain systemic bottlenecks. The sector’s exposure index stayed stable at 67, indicating that while preparedness is improving, vulnerabilities persist.
From Reactive to Resilient—Real Estate’s Risk Maturity Moment
The real estate sector's steady climb up the risk maturity curve is more than optics. It signals a decisive break from the sector’s past volatility and a pivot to systems thinking—where AI, ESG, financial discipline, and strategic foresight are hardwired into growth models. As India prepares for its next economic leap, risk readiness is emerging as the new currency of credibility.
In today’s high-stakes landscape, risk isn’t a variable—it’s a vertical. Real estate developers who view resilience as a boardroom priority, not a compliance chore, are those likely to lead the next decade. The CIRI 2024 insights make one thing clear: future-proofing is no longer optional—it's the only viable blueprint.
