Economic Stability Keeps India Among Top Real Estate Growth Markets in APAC
India remains a top real estate growth market in APAC, driven by economic stability, substantial institutional investments, and rising demand in office and logistics segments.
India continues to position itself as one of the fastest-growing real estate markets in the Asia Pacific (APAC) region, driven by sustained economic stability and positive investment sentiment. With a resilient economy supported by strong domestic demand, favorable government policies, and increasing foreign direct investments, India has become an attractive destination for institutional investors seeking high-yield opportunities. The country’s real estate sector, particularly in office, industrial, and logistics, has consistently grown, reflecting robust investor confidence.
Surge in Real Estate Investments Across Asia Pacific
Real estate investments in the APAC region grew by 12 percent year-on-year (YoY), reaching $155.9 billion in the previous year. The growth reflects the resilience of the region’s top nine markets, which include Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan. The second half of 2024 saw $83.2 billion in real estate investments, with South Korea, Japan, and Mainland China contributing 59 percent. Meanwhile, India, South Korea, Taiwan, and Australia witnessed significant investment growth, with each market recording more than a 30 percent YoY increase during this period.
Sectoral Trends in H2 2024
The office and industrial and logistics segments continued to dominate the real estate landscape in H2 2024, accounting for approximately 60 percent of total investments. Alongside these sectors, the retail and hospitality segments experienced a notable resurgence. Retail investments grew by 31 percent YoY, reaching $15.0 billion during H2 2024. Australia and South Korea emerged as key contributors in the retail segment, with each market recording inflows exceeding $3.0 billion. This upward trajectory reflects renewed investor interest in diversified asset classes within the APAC region.
India’s Strong Investment Momentum
India maintained a significant position within the APAC real estate investment landscape during H2 2024, recording an 88 percent annual rise in investments, amounting to $3.0 billion. Office assets attracted the majority of investments in India, accounting for 47 percent of the total, followed by the industrial & logistics segment, which held a 27 percent share. Mumbai emerged as the leading investment destination, drawing almost half of the total investments during this period, primarily driven by acquisitions in the office segment.
Institutional Investments and Foreign Capital Inflows
Institutional investments in Indian real estate grew by 22 percent in 2024, reaching $6.5 billion. This upward trend will persist in 2025, supported by favorable economic growth prospects and optimistic investment sentiment. Easing monetary policies, including potential repo rate reductions, will likely enhance liquidity and drive transaction volumes across various real estate segments in the coming year. In H2 2024, foreign investments accounted for 57 percent of total inflows, while domestic investments amounted to $1.3 billion, reflecting an 8 percent YoY growth.
Investment inflows from APAC region countries and contributions from the USA, Canada, and the EU are expected to remain buoyant. Institutional investments will likely play a pivotal role in sustaining growth, with global investors continuing to diversify their real estate portfolios. Domestic investors are also expected to strengthen their presence in segments that offer higher yields, such as office, industrial, and warehousing.
The resilience of the Asia Pacific real estate market remains evident, with institutional investments showing sustained growth in 2024. This positive momentum has set the stage for a strong performance in 2025. With inflation easing economic growth projections remaining healthy, real estate investment volumes in the region are expected to stay strong in the year ahead.
