Institutional investments in Indian real estate touched a remarkable USD 6.5 billion inflows in 2024, marking a substantial 22% increase from the previous year's USD 5.4 billion. This surge reflects strong investor appetite for Indian real estate and marks an annual high for both domestic and foreign investments since 2020 as per Colliers India report.
The fourth quarter of 2024 was particularly robust, with investments totaling USD 1.9 billion—2.3X times compared to the same period in 2023. This end-year momentum contributed significantly to higher investment volumes for 2024. Interestingly, domestic investments were significant in Q4 2024 and accounted for 43% of the inflows during the final quarter. This underscores the growing confidence of India-based institutional investors alongside sustained interest from international counterparts.
Investment inflows were limited for alternate assets in Q3 2024, mixed use assets in Q4 2023 and retail in 2023 and Q3 2024
The institutional ?ow of funds includes investments by family o?ces, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs and sovereign wealth funds. The data has been compiled as per available information in the public domain
During 2024, institutional investments in Industrial & warehousing segment rose and were almost thrice the inflows in 2023. The segment attracted USD 2.5 billion investments, accounting for 39% of the total inflows, closely followed by the office segment at 36% share. Rising investments in the Industrial & warehousing segment is a testament to healthy domestic activity, enhancements in logistics efficiency, and India's improving capabilities as a global manufacturing hub. Foreign investments drove over 80% of the total inflows in the segment during the year.
While multi-city deals corresponded to an overall 39% share, Mumbai, with about USD 1.6 billion inflows accounted for 24% of the real estate investments in the country during 2024. At 58%, office segment attracted 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 8-9% share each during the year.
