India's real estate investments surge 88% in H2 2024

India's real estate market has seen a significant boom, with investments increasing by 88% year-on-year to reach USD 3.0 billion in the second half of 2024. This surge is mainly due to strong interest in office and industrial logistics sectors. More than half of these investments, 57%, came from foreign sources, showing India's appeal to global investors in the Asia-Pacific region. A recent report from Colliers highlights India's growth amidst a broader 12% increase in APAC real estate investment, which totaled USD 155.9 billion. While countries like South Korea, Japan, and China led the region, India's unique growth trajectory is attributed to strong economic fundamentals, institutional investments, and a booming logistics market. Mumbai has been a focal point for these investments, attracting nearly half of the total inflows, particularly in high-quality office spaces. Badal Yagnik from Colliers India noted a remarkable 22% rise in overall institutional investments, reaching USD 6.5 billion in 2024, and expects this trend to continue into 2025. Office sector investments soared by an impressive 571%, while industrial and logistics investments increased by 58%. Residential investments also rose by 41%, and there is renewed interest in retail, which saw inflows of USD 104 million. Foreign investors significantly influenced this growth, accounting for over half of the investments, with domestic investment also increasing by 8%. Analysts expect more inflows from countries like the USA, Canada, and various APAC nations in 2025, contributing to a robust real estate environment. Looking ahead, the overall real estate market in both the APAC and India is projected to continue its growth due to favorable economic conditions and a high demand for office and logistics spaces. Retail and hospitality sectors are also anticipated to recover as consumer confidence returns. As large investment firms and sovereign wealth funds pursue opportunities, India is likely to remain a key player in the global real estate market.