India Attracts $3 Billion in Real Estate Investments in H2 2024

Real estate investments in the Asia Pacific region grew by 12 per cent year-on-year, reaching $155.9 billion in 2024, according to Colliers’ Asia Pacific Investment Insights H2 2024 report. The increase reflects steady growth in key markets, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

South Korea, Japan, and Mainland China accounted for 59 per cent of the total $83.2 billion real estate investments in the second half of 2024. India, South Korea, Taiwan, and Australia saw significant investment growth, with each country registering over 30 per cent year-on-year increases during this period. Office and industrial & logistics remained dominant, contributing to nearly 60 per cent of total investments. Retail and hospitality sectors also rebounded, with retail investments rising 31 per cent year-on-year to $15.0 billion. Australia and South Korea alone recorded inflows exceeding $3.0 billion in the retail segment.

India saw an 88 per cent annual rise in real estate investments in the second half of 2024, reaching $3.0 billion. Office assets attracted the highest share at 47 per cent, followed by industrial & logistics at 27 per cent. Mumbai emerged as the primary investment hub, with nearly half of total investments concentrated in office acquisitions.

Institutional real estate investments in India totaled $6.5 billion in 2024, reflecting a 22 per cent increase from the previous year. Colliers India CEO Badal Yagnik attributed the rise to strong economic growth, positive investor sentiment, and expected policy measures such as a potential repo rate cut, which could enhance liquidity and drive further transactions in 2025.

Investment trends in India showed significant shifts across asset classes. Office investments surged 571 per cent year-on-year to $1.44 billion in H2 2024, while industrial & logistics saw a 58 per cent rise, reaching $831 million. Residential investments increased 41 per cent to $503 million, while retail attracted $104 million. Alternative assets, including data centers and life sciences, saw a decline of 70 per cent.

Foreign capital played a major role in India’s real estate investments, accounting for 57 per cent of inflows in H2 2024. Domestic investments also grew by 8 per cent, reaching $1.3 billion. Investments from the U.S., Canada, and the European Union remained strong, while capital inflows from the Asia Pacific region are expected to rise further in 2025.

Colliers’ Senior Director & Head of Research, Vimal Nadar, highlighted the increasing interest from both global and domestic investors. He noted that segments with higher yields, such as office and industrial & warehousing, will likely attract more capital.

Chris Pilgrim, Managing Director of Global Capital Markets at Colliers Asia Pacific, highlighted the resilience of the region’s real estate sector. He pointed to continued momentum in office investments, strong leasing demand, and corporate expansions as key drivers. Industrial & logistics and residential segments are expected to maintain long-term growth, while retail, hospitality, and alternative assets could gain traction as investors capitalize on market recovery.

Overall, Asia Pacific’s real estate investment volumes are projected to remain stable in 2025, supported by easing inflation, economic growth, and declining borrowing costs across major markets.