Indian Real Estate Set for Record Investment Surge in 2024

Institutional investments in Indian real estate are expected to exceed 2023 levels, driven by demand in office, industrial, and residential sectors, notes Colliers' 2025 Global Investor Outlook. With USD 4.7 billion invested in the first three quarters of 2024, a promising trend for 2025 emerges.

Institutional investments in Indian real estate are on track to surpass 2023 levels, according to a report by Colliers. The report, part of the 2025 Global Investor Outlook, highlights robust investments across various sectors, including office, industrial, and residential. This development is poised to significantly impact the real estate landscape in 2025.

In the first three quarters of 2024, investments reached USD 4.7 billion, almost matching the entire investment inflow of 2023. This rising momentum underscores a promising trend in institutional investments across multiple real estate asset classes looking ahead to 2025. Since 2021, total institutional inflows have reached USD 19 billion, with volumes increasing annually, fueled by growing demand in core real estate segments.

Office assets have consistently driven over 40% of inflows over the past four years. Meanwhile, sectors such as industrial, warehousing, and residential are gaining heightened attention, noted Piyush Gupta, Managing Director of Capital Markets and Investment Services at Colliers India. Gupta mentioned that the office sector in India is experiencing its best year, with record absorption rates driven by global and domestic demand.

Vimal Nadar, Senior Director and Head of Research at Colliers India, indicated that India's evolving real estate landscape presents compelling opportunities for investors across both core and non-core segments in 2025. He also highlighted a variety of growing sectors, including data centers, senior living, and student housing, which offer significant long-term potential.

(With inputs from agencies.)