India Continues Strong Growth in Real Estate Investment in APAC Amid Resilient Economies

Real estate investments in the Asia Pacific (APAC) region saw a 12% year-on-year increase, reaching $155.9 billion in 2024. India continued to lead the charge with remarkable growth, particularly in the second half of 2024, which saw a staggering 88% annual rise in investments, totaling $3.0 billion. According to a new report by Colliers, India’s resilient economy and growing real estate market continue to attract both domestic and international investors.

India’s Real Estate Market Shows Strong Momentum

Among the nine major markets in APAC, India, South Korea, Taiwan, and Australia reported significant investment growth, each experiencing over a 30% year-on-year increase during 2024. In India, office assets remained the dominant focus for investment, accounting for 47% of total investments, followed by industrial and logistics properties, which attracted 27% of the investments.

Mumbai was the primary beneficiary of this surge, capturing nearly half of the investments in the second half of 2024, mainly driven by office asset acquisitions.

Foreign Investment Dominates Indian Real Estate Market

The steady rise in real estate investment volumes underscores India’s position as a top destination for both domestic and foreign capital. In H2 2024, foreign investments made up 57% of total inflows, while domestic investments, amounting to $1.3 billion, saw a notable 8% growth from the previous year.

Institutional Investments and Optimistic Outlook for 2025

Institutional investments in Indian real estate also showed robust growth, with a 22% increase in 2024, reaching $6.5 billion. This momentum is expected to carry into 2025, supported by India’s favorable economic growth prospects and optimistic investment sentiments. According to Badal Yagnik, CEO of Colliers India, the easing of monetary policies, including further reductions in the repo rate, is expected to enhance liquidity and stimulate transaction activity across various real estate sectors in 2025.

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Diverse Investment Opportunities in India’s Real Estate Market

Looking ahead, Vimal Nadar, Senior Director and Head of Research at Colliers India, noted that global investors are likely to continue diversifying their real estate portfolios. Domestic investors are expected to focus on high-yield segments such as office spaces, industrial properties, and warehousing, driven by favorable market conditions and government policies.

Outlook for Real Estate Investments in APAC

Overall, the APAC real estate market is expected to remain resilient in 2025. The growth trajectory in India, alongside continued investment in other key markets like South Korea, Taiwan, and Australia, indicates that the region will maintain its appeal for real estate investors globally.

India’s real estate market continues to show strong growth, driven by increased foreign investment, institutional inflows, and positive economic outlooks. With favorable policies and diverse investment opportunities, India is set to remain a key player in the APAC real estate market in the coming years.