The Indian housing market has been experiencing a surge in institutional investments, with $1.15 billion being invested in 2024 alone, marking a 46% increase from the previous year. This significant influx of capital is a testament to the strong demand for residential properties in the country.
According to Colliers India, the total institutional investment in Indian real estate reached $6.5 billion in 2024, up from $5.4 billion in the previous year. Foreign investors accounted for a substantial portion of this investment, with $4.3 billion flowing into the market.
The industrial and warehousing segment emerged as a key beneficiary of this investment trend, receiving $2.5 billion in 2024, compared to $877.6 million in 2023. The office segment, on the other hand, saw a 23% decline in investment, dropping to $3,022.5 million in 2024.
Commenting on this trend, Badal Yagnik, CEO of Colliers India, highlighted the growing interest of Asia Pacific investors in the Indian real estate market. He also expressed optimism about the future outlook for real estate investments in the country.
Ankur Jalan, CEO of the Real Estate focussed Alternative Investment Fund (AIF) Golden Growth Fund (GGF), underscored the robust demand for Indian real estate across asset classes. He attributed this to government policy interventions that have made India an attractive destination for global investors.
Looking ahead, Jalan predicted that fund inflows would remain strong in the coming years, especially in major cities like Delhi-NCR. Overall, the surge in institutional investments in the Indian housing market reflects the growing confidence of investors in the country’s real estate sector and points towards a promising future for the industry.
