Mumbai real estate investments rose 88% in H2 2024
Investments in Indian real estate saw a significant increase in the second half of 2024, rising by 88% to reach $3 billion. Mumbai, India's financial capital, received nearly half of this investment, mainly driven by office asset acquisitions. The report from Colliers India highlights that the office sector attracted the most investment at 47%, followed by industrial and logistics at 27%, and residential at 17%. Badal Yagnik, CEO of Colliers India, indicated that this growth trend is expected to continue into 2025. He emphasized positive economic growth and optimistic investment sentiment. Furthermore, easing monetary policies and potential reductions in the repo rate could enhance liquidity, spurring further real estate activity. The office segment alone saw investments of $1.44 billion in the latter half of 2024, a dramatic increase of 571% from the previous year. Peush Jain from ANAROCK Group believes that the recovery of global economies, particularly in technology, will boost demand for office spaces in India's major cities in 2025. The residential sector also performed well, attracting $503 million in H2 2024, up by 41% from the last year. Ankur Jalan, CEO of a real estate fund, noted strong housing demand driven by rising affluence and improving infrastructure. He predicted increased investment, especially in South Delhi, under the new government. Foreign investors accounted for 57% of the total investments, while domestic investments rose by 8% to $1.3 billion. Vimal Nadar, research director at Colliers India, stated that the steady rise in investment volumes reinforces India's status as a favored destination for both domestic and foreign investors. Looking forward, the Asia Pacific real estate market also saw a 12% year-on-year growth, reaching $155.9 billion in 2024. Countries like South Korea and Japan contributed to the majority of investments. Overall, the forecast for real estate investments remains positive for 2025 due to easing inflation and economic growth prospects.