India's Real Estate Boom: Investments Surge in 2024

India's real estate market saw an 88% rise in investments, totaling USD 3 billion in the latter half of 2024. Mumbai led the surge with significant office asset acquisitions. With favorable economic factors, experts anticipate continued growth in 2025.

India has showcased impressive momentum within the Asia Pacific region, recording a significant spike in real estate investments during the latter half of 2024. According to a report from the Nasdaq-listed real estate consultancy firm Colliers, investments soared by 88% year-on-year, reaching USD 3 billion. Notably, office assets attracted the largest share at 47%, followed by industrial and logistics sectors which secured 27% of the investments.

Mumbai emerged as a key hotspot, drawing nearly half of the total investments mainly through the acquisition of office properties, as highlighted in Colliers' 'Asia Pacific Investment Insights H2 2024' report. Colliers India's Chief Executive Officer, Badal Yagnik, emphasized the remarkable 22% rise in capital inflows, totaling USD 6.5 billion in 2024, expecting this positive momentum to continue into 2025 supported by favorable economic growth and optimistic investment sentiments.

Anticipated easing of monetary policy, including potential reductions in the repo rate, is projected to boost liquidity and stimulate real estate activities across various segments in 2025. Vimal Nadar, Colliers India's Senior Director and Head of Research, noted India's stature as a key real estate investment destination has been reinforced by sustained growth in investment volumes, appealing to both domestic and international investors.

While global investors are poised to diversify their portfolios, domestic investors are likely to explore high-yield segments like office and industrial & warehousing, as suggested by Nadar. The overall Asia Pacific real estate markets, including India, saw a 12% year-on-year increase in investments, amounting to USD 155.9 billion in 2024, demonstrating resilience across top markets such as Australia, Mainland China, Hong Kong, Japan, and others.

Looking forward, Colliers anticipates robust real estate investment volumes in the Asia Pacific will persist through 2025, fueled by easing inflation, sound economic forecasts, and decreasing borrowing costs.

(With inputs from agencies.)