India’s real estate sector saw a significant investment surge during the second half of 2024, attracting $3 billion—a staggering 88% year-on-year increase. Office spaces led the way, accounting for 47% of the total investments, followed by industrial and logistics at 27%. Mumbai emerged as the country’s top investment hub, with nearly half of all funds directed toward office acquisitions.

“Strong economic growth, positive investor sentiment, and expected policy measures such as a potential repo rate cut will further enhance liquidity and drive transactions in 2025,” said Badal Yagnik, CEO of Colliers India. Institutional real estate investments in India reached $6.5 billion for the year, reflecting a 22% growth compared to 2023.

Across the Asia-Pacific region, real estate investments totalled $83.2 billion in H2 2024, with South Korea, Japan, and Mainland China contributing 59% of the total. India, South Korea, Taiwan, and Australia registered investment growth of over 30% year-on-year. The office and industrial sectors remained dominant, representing nearly 60% of total investments. Meanwhile, retail and hospitality rebounded, with retail investments climbing 31% to $15 billion. Australia and South Korea led in retail inflows, each exceeding $3 billion.

Investment trends in India showcased notable shifts across asset classes. Office investments skyrocketed 571% year-on-year to $1.44 billion in H2 2024, while industrial and logistics grew 58%, reaching $831 million. Residential investments increased by 41% to $503 million, whereas retail drew $104 million. However, alternative assets, including data centres and life sciences, experienced a 70% decline.

Foreign capital was crucial in India’s real estate market, making up 57% of total investments in H2 2024. Domestic investments also showed resilience, growing 8% to $1.3 billion. “Segments with higher yields, such as office and industrial & warehousing, will likely attract more capital,” said Vimal Nadar, Senior Director & Head of Research at Colliers. Investments from the U.S., Canada, and the European Union remained strong, and capital inflows from the Asia-Pacific region are expected to rise further in 2025.

Chris Pilgrim, Managing Director of Global Capital Markets at Colliers Asia Pacific, emphasized the sector’s resilience, citing continued momentum in office investments, strong leasing demand, and corporate expansions. “Industrial & logistics and residential segments are expected to maintain long-term growth, while retail, hospitality, and alternative assets could gain traction as investors capitalize on market recovery,” he added. Looking ahead, Asia-Pacific real estate investment volumes are projected to remain stable in 2025, supported by easing inflation, economic growth, and declining borrowing costs.

As India continues to attract global capital, the strong performance of its office and industrial segments signals sustained investor confidence. With policy support and an expanding economy, the country is poised for further growth in 2025 and beyond.