India’s Real Estate Investments Surge 88% YoY in H2 2024

India’s real estate market has emerged as a high-growth destination within the Asia-Pacific (APAC) region, attracting global investors. Driven by strong economic fundamentals, expanding corporate presence, and the surge in e-commerce, the country has seen growth, especially in its office and industrial & logistics segments. 

According to Colliers’ “Asia Pacific Investment Insights H2 2024” report, real estate investments in India surged by 88% year-on-year, reaching USD 3.0 billion in H2 2024. This performance stands out against the broader APAC investment growth of 12%, which totalled USD 155.9 billion for the year.

South Korea, Japan, and Mainland China were the top performers within APAC, contributing 59% of the USD 83.2 billion real estate investments in H2 2024. However, India’s growth trajectory was unparalleled, driven by institutional investments, a thriving office market, and favourable economic conditions. Mumbai alone accounted for nearly half of the country’s investment inflows, showcasing significant investor interest in Grade-A office spaces.

Key Drivers of India’s Real Estate Boom

India’s robust growth in the real estate sector is primarily attributed to a dynamic office market and a rapidly growing industrial and logistics sector. In H2 2024, office assets recorded a staggering 571% increase in investments, reaching USD 1,442 million compared to just USD 215 million in H2 2023. This surge is driven by resilient leasing demand and corporate expansions, reflecting India’s growing importance as a business hub.

The industrial and logistics sector also demonstrated substantial growth, with investments rising by 58% to USD 831 million. As e-commerce continues to thrive, the demand for warehousing and logistics infrastructure has increased, leading to higher investor interest. 

Meanwhile, residential investments climbed by 41% to USD 503 million, and retail investments, previously affected by the pandemic, rebounded with inflows of USD 104 million.

As per the report, foreign investments have played a pivotal role in India’s real estate success, contributing to 57% of the total inflows in H2 2024. While the USA, Canada, and the EU remain significant investors, inflows from other APAC countries are anticipated to rise in 2025, further solidifying India’s position in the global real estate landscape. Domestic investments have also shown strength, growing by 8% year-on-year to reach USD 1.3 billion.

APAC and Global Investment Trends

Beyond India, the broader APAC region has seen significant investment activity, particularly in office and industrial & logistics assets. The region’s e-commerce boom and the need for supply chain optimization have fueled investments in logistics and warehousing. 

The retail and hospitality segments in APAC have also witnessed a resurgence. Retail investments rose by 31% year-on-year, reaching USD 15.0 billion in H2 2024. Countries like Australia and South Korea reported significant inflows, each exceeding USD 3.0 billion, highlighting a renewed focus on consumer-driven real estate segments.

Conclusion

India’s real estate market has demonstrated remarkable resilience and growth, positioning itself as a key player in the APAC investment landscape. As international investors expand their presence in the country, India’s real estate market is likely to remain a central focus for global investment strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.