Real Estate Investments in India Hit $3 Billion in H2 2024, This City Bags the Lion’s Share: Report

Institutional investment in Indian real estate continued to grow at a remarkable pace, reaching $3,035 million in the second half of 2024, compared to $1,616 million in H2 2023, reflecting an 88% year-on-year growth, according to a report by real estate consultancy firm Colliers.

Mumbai Leads Investment Boom

Mumbai accounted for almost half of the total investments in H2 2024, primarily driven by the acquisition of office assets. The report, titled Asia Pacific Investment Insights H2 2024, highlighted that office assets attracted the majority share at 47%, followed by industrial & logistics (27%) and residential (17%).

Office Investments Skyrocket by 571%

The office segment emerged as the biggest winner, attracting $1,442 million in investments in H2 2024, marking a 571% surge from $215 million in the same period last year. The strong performance was attributed to revival in global economies, especially in the technology sector, leading to increased demand for office spaces across India’s major cities.

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Peush Jain, Managing Director of Commercial Leasing and Advisory at ANAROCK Group, stated:

“The Indian office market is poised to experience positive growth in 2025, driven by multiple favorable factors shaping the commercial real estate landscape.”

Residential Investments Show Steady Growth

The residential sector attracted $503 million in H2 2024, registering a 41% growth from $356 million in H2 2023.
Ankur Jalan, CEO of Golden Growth Fund, emphasized that India’s rising affluence and infrastructure development are fueling the housing demand. He noted that Delhi, particularly South Delhi, is expected to see increased investments in the coming years.

Foreign Investors Dominate Market with 57% Share

Foreign investors contributed 57% of total real estate investments in India during H2 2024, while domestic investments stood at $1.3 billion, reflecting an 8% year-on-year increase.

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted:

“Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital.”

Asia-Pacific Real Estate Market Also Witnesses Growth

The Asia-Pacific real estate investment market saw a 12% year-on-year increase, reaching $155.9 billion in 2024. Countries like South Korea, Japan, and China accounted for 59% of the total investments in H2 2024. Meanwhile, India, South Korea, Taiwan, and Australia recorded more than 30% year-on-year investment growth.

Optimistic Outlook for 2025

Experts predict that India’s real estate investment momentum will continue into 2025, supported by favorable economic conditions, monetary policy easing, and proactive government policies. With declining borrowing costs and high investor confidence, institutional investments across office, logistics, and residential segments are expected to remain strong.