New Delhi: Led by the industrial and warehousing segment, institutional investments in Indian real estate touched $6.5 billion in inflows in 2024, a substantial 22 percent increase from the previous year’s $5.4 billion, according to a report on Monday.
Overall, at $4.3 billion, foreign inflows continued to drive annual real estate investments, which accounted for 66 percent of the market, while domestic investments witnessed a steady rise, surging 27 percent during the year, according to the report by Colliers India.
Mumbai, with about $1.6 billion in inflows, accounted for 24 percent of the country’s real estate investments last year. Investment inflows in Bengaluru, Chennai, and Delhi NCR also remained steady and accounted for 8-9 percent of each during the year.
The fourth quarter of 2024 was particularly robust, with investments reaching $1.9 billion—a 2.3-fold increase compared to the same period in 2023.
Notably, domestic investments were significant in Q4 2024 and accounted for 43 percent of the inflows during the final quarter.
The industrial and warehousing segment accounted for the highest share of overall real estate investment volumes, at 39 percent last year, surpassing the office segment.
Manufacturing and industrial growth was robust, as reflected in the performance of macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP).
At $1.1 billion, the residential segment too witnessed substantial growth, rising 46 per cent compared to 2023 levels.
“Interestingly, APAC investors drove almost one-third of the foreign inflows in the country’s real estate during the year. Looking ahead, Tier-I cities will continue to attract the majority of the capital, amidst government impetus on infrastructure development and ‘Make in India’ initiative,” said Badal Yagnik, Chief Executive Officer, Colliers India.
While global investors’ confidence is likely to remain upbeat, Yagnik added that 2025 is likely to see increased capital deployment from domestic players across office, residential, and industrial assets.
According to the report, rising investments in the industrial and warehousing segment are 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 percent of the total inflows in the segment during the year.
Rising demand for superior-quality Grade A developments and evolving supply-chain models will continue to incentivise investors in consolidating industrial and warehousing assets in the country, said Vimal Nadar, Senior Director and Head of Research at Colliers India.
–IANS
