Not long ago, India’s real estate sector was still seen by many global investors as a high-potential but high-risk bet. That perception has now shifted decisively. Today, India is being viewed as a mature, competitive, and resilient property market that can hold its own on the global stage. Record capital inflows, steady domestic participation, and widening interest beyond the big metros all point to a deeper change underway.
In 2024 alone, India’s real estate sector attracted about $11.4 billion in investments, the highest ever recorded in a single year, as per CBRE. This surge is not a sudden spike driven by short-term speculation. It reflects long-term confidence in India’s economic growth, urbanisation, and housing demand. Between 2022 and 2024, total real estate investments touched nearly $26.7 billion, showing that post-pandemic recovery in the property market has been both swift and durable.
A striking trend in this investment boom is the growing role of domestic capital. Indian developers and local investors have emerged as the dominant force, contributing roughly 61 percent of total inflows between 2020 and 2024. Much of this money has gone into land acquisitions and built-up office assets. This suggests that developers are not just chasing quick returns but are positioning themselves for future demand in housing, commercial offices, and mixed-use developments.
Foreign investors continue to play a major role as well, accounting for around 39 percent of investments in recent years. Most of this capital has come from North America, Canada, and Singapore. Overseas funds have been particularly active in office and residential assets, drawn by India’s expanding urban workforce, rising incomes, and strong housing demand across major cities. Their sustained interest reflects a broader belief that India’s urban growth story still has many years to run.
The momentum is expected to continue into 2025. Real estate advisors point to a large stock of “dry powder”, or uninvested capital, waiting to be deployed. Strong acquisition pipelines are already forming, especially for retail assets and residential development sites. More than half of all equity inflows into Indian real estate since 2018 have come in just the last three years, underlining how sharply investor activity has accelerated in the recent past.
The traditional big three markets, Mumbai, Delhi-NCR, and Bengaluru, continue to dominate the investment landscape. Together, they accounted for about 62 percent of total investments between 2022 and 2024, or roughly $16.5 billion. These cities remain attractive due to the availability of investment-grade assets, strong commercial demand, and continuous infrastructure upgrades. Mumbai alone attracted nearly $6.9 billion in investments during this period, underlining its status as India’s financial and real estate nerve centre.
But the investment map is no longer confined to just a handful of metros. Tier-2 cities are beginning to draw serious attention. Cities such as Nagpur, Cuttack, and Lucknow now account for about 10 percent of total investment volumes between 2022 and 2024, or around $3 billion. Investors here are focusing largely on development sites and industrial and logistics assets. This reflects the steady expansion of manufacturing, e-commerce, and supply-chain infrastructure into smaller urban centres.
Another key feature of the current cycle is the strong presence of institutional investors. From 2022 to 2024, institutional capital made up around one-third of total real estate investments. Developers, meanwhile, contributed close to 46 percent. With fewer ready-to-buy assets available in prime locations, many investors are shifting toward joint ventures and partnership-driven developments. These collaborative models allow developers and funds to share risk while unlocking large land parcels for future construction.
Residential real estate has emerged as the biggest magnet for capital in recent years. About 61 percent of investments into development sites and land acquisitions have been directed toward housing. This reflects the revival of end-user demand after the pandemic, supported by stable interest rates, rising household incomes, and a growing appetite for larger and better-quality homes. Affordable and mid-income housing continue to see healthy traction, while premium projects in top cities are also witnessing renewed interest.
India’s office market, despite global uncertainty around work-from-home trends, remains a long-term favourite among investors. Domestic funds have become especially active in acquiring office assets, betting on the continued expansion of technology, financial services, and global capability centres. In 2024, foreign institutional inflows into the office sector recorded a four-fold year-on-year jump, a sign that global investors are once again warming up to Indian commercial property after a cautious period.
The logistics and warehousing segment is another bright spot. Driven by the growth of e-commerce, third-party logistics, and manufacturing, this sector is expected to maintain strong momentum through 2025. Potential initial public offerings in the logistics space and growing demand for value-added services such as cold storage and last-mile delivery hubs are adding to investor interest.
Retail real estate, too, is seeing renewed confidence. Shopping centres, high-street assets, and mixed-use developments are attracting specialised investors who are not only acquiring existing assets but also developing new ones. Rising discretionary spending, organised retail expansion, and tourism growth are expected to support this segment in the coming year.
What makes India stand out globally is its relative stability at a time when many international markets are facing economic and geopolitical headwinds. While interest rates remain high in several developed economies, India’s growth outlook remains strong. The country’s demographic advantage, steady urbanisation, and improving infrastructure provide investors with a rare mix of scale and long-term visibility.
The strategic way in which capital is being deployed today signals more than just a cyclical rebound. It points to a deeper structural shift in how global and domestic investors view Indian real estate. Housing, offices, logistics, and retail are no longer seen as isolated asset classes but as part of a broader urban growth ecosystem.
As India moves into 2025, the foundations are firmly in place for continued expansion. Real estate is no longer merely a reflection of economic growth. It has become a critical driver of jobs, consumption, and investment activity. For investors looking for long-term value in an uncertain global environment, Indian real estate is increasingly being seen not as a high-risk emerging market play, but as a strategic, growth-oriented destination.
