Indian Realty Sees 22% Growth with $6.5 Billion Foreign Inflows in 2024
The Indian real estate sector has experienced a significant growth trajectory in 2024, with institutional investments reaching $6.5 billion, marking a 22% increase from the previous year's $5.4 billion, according to a report released by Colliers India. The industrial and warehousing segments led the charge, contributing substantially to this growth. Foreign inflows, which accounted for 66% of the total investments, remained a major driving force, totaling $4.3 billion. Meanwhile, domestic investments saw a steady rise, growing by 27% during the year.
Mumbai emerged as the top destination for real estate investments, attracting $1.6 billion, or 24% of the total inflows. Bengaluru, Chennai, and Delhi NCR also saw steady investment patterns, each securing an 8-9% share of the overall investments. The fourth quarter of 2024 proved to be particularly strong, with investments reaching $1.9 billion, a 2.3 times increase compared to the same period in 2023. Interestingly, domestic investments played a larger role in Q4, contributing 43% of the total inflows during this period.
The industrial and warehousing segment was the standout performer, accounting for 39% of the total real estate investment volumes. This surge is reflective of the robust manufacturing and industrial growth in India, supported by positive macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP). The residential sector also experienced notable growth, with investments rising by 46% to reach $1.1 billion, a marked improvement compared to 2023.
Foreign investors, particularly from the APAC region, were responsible for driving nearly one-third of the foreign inflows in India's real estate market. The report also pointed out that Tier-I cities would continue to attract the bulk of capital due to the government's focus on infrastructure development and initiatives like 'Make in India.'
Looking ahead, Colliers India CEO Badal Yagnik highlighted that while global investor confidence is expected to remain high, 2025 is likely to see increased capital deployment from domestic players across various sectors, including office spaces, residential properties, and industrial assets. The report noted that the rise in investments in the industrial and warehousing segment is a reflection of healthy domestic activity, enhanced logistics efficiency, and India’s growing stature as a global manufacturing hub.
