Our Bureau
New Delhi
In 2024, foreign investors in India’s real estate sector, contributed significantly to a record $6.5 billion in institutional investments, a 22% increase from 2023. This surge marks the highest level of investment since 2020, driven primarily by robust demand in the industrial and warehousing segments, which attracted $2.5 billion, accounting for 39% of total inflows.
Notably, foreign investments totalled $4.3 billion, comprising 66% of overall inflows, with APAC investors driving nearly one-third of this amount.
The fourth quarter of 2024 alone saw inflows of $1.9 billion, reflecting a remarkable 2.3 times increase compared to the same period in 2023. Domestic investors also played a crucial role, contributing 43% of these inflows during this quarter.
Major cities like Mumbai led the charge, accounting for 24% of total investments with $1.6 billion, while Bengaluru, Chennai, and Delhi NCR each contributed around 8-9%. The growth trajectory is expected to continue into 2025 as government initiatives like ‘Make in India’ and infrastructure development bolster investor confidence in Tier-I cities.
Looking ahead to 2025 and beyond, experts predict that the momentum observed in 2024 will continue as India’s economy expands and urbanizes further. The combination of favourable demographics, increasing foreign direct investment (FDI), and government support is likely to sustain interest from international investors.
Moreover, as global supply chains evolve post-pandemic, India is well-positioned to attract more manufacturing investments due to its strategic location and large labour force. This shift could lead to increased demand for industrial spaces, which would further bolster real estate investments.
