Indian real estate institutional investments in 2024 set to surpass 2023 levels: Colliers
Nov 22, 2024, 15:13 IST
The institutional investments in Indian real estate in the current year (2024) are poised to surpass 2023 level, stated a report by Colliers.
Colliers' Asia Pacific Report, 2025 Global Investor Outlook stated that the growth is supported by robust investments in office, industrial and warehousing, and residential sectors.
In the first three quarters of 2024 alone, investments have reached USD 4.7 billion, accounting for 87 per cent of the inflows in the entire year of 2023. This momentum also sets a promising tone for institutional investments across real estate asset classes in 2025, the report added.
Since 2021, institutional inflows have totaled USD 19 billion, with investment volumes rising each passing year. This growth is fueled by surging demand across core real estate segments.
While office assets have driven over 40 per cent of inflows during the last four years (2021-24), both industrial and warehousing and residential sectors are now seeing accelerated momentum in recent years, the report added.
"The office sector is likely to have its best year in India, with record absorption fueled by GCCs and domestic demand. The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital." said Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers India.
Vimal Nadar, Senior Director and Head of Research, Colliers India added that the evolving real estate landscape in India offers compelling opportunities for investors across both core and non-core segments in 2025. He added that The office sector will continue to present increased opportunities in developmental assets, while rising and evolving consumption patterns and strong demand from e-commerce and third-party logistics (3PL) players will bolster the industrial and warehousing sector.
"Residential real estate, meanwhile, is likely to witness increased investor participation in joint venture platforms, redevelopment projects in Tier I cities. Additionally, with evolving demographic patterns, investments in alternatives such as data centers, senior living, student housing, schools, life sciences, holiday homes etc. will continue to hold immense long-term potential," he added.
The 2025 Global Investor Outlook is based on a series of interviews conducted with senior Colliers experts as well as a survey of around 1,000 property investors in October and November 2024, nearly 400 of whom were from APAC.
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Colliers' Asia Pacific Report, 2025 Global Investor Outlook stated that the growth is supported by robust investments in office, industrial and warehousing, and residential sectors.
In the first three quarters of 2024 alone, investments have reached USD 4.7 billion, accounting for 87 per cent of the inflows in the entire year of 2023. This momentum also sets a promising tone for institutional investments across real estate asset classes in 2025, the report added.
Since 2021, institutional inflows have totaled USD 19 billion, with investment volumes rising each passing year. This growth is fueled by surging demand across core real estate segments.
While office assets have driven over 40 per cent of inflows during the last four years (2021-24), both industrial and warehousing and residential sectors are now seeing accelerated momentum in recent years, the report added.
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Vimal Nadar, Senior Director and Head of Research, Colliers India added that the evolving real estate landscape in India offers compelling opportunities for investors across both core and non-core segments in 2025. He added that The office sector will continue to present increased opportunities in developmental assets, while rising and evolving consumption patterns and strong demand from e-commerce and third-party logistics (3PL) players will bolster the industrial and warehousing sector.
"Residential real estate, meanwhile, is likely to witness increased investor participation in joint venture platforms, redevelopment projects in Tier I cities. Additionally, with evolving demographic patterns, investments in alternatives such as data centers, senior living, student housing, schools, life sciences, holiday homes etc. will continue to hold immense long-term potential," he added.
The 2025 Global Investor Outlook is based on a series of interviews conducted with senior Colliers experts as well as a survey of around 1,000 property investors in October and November 2024, nearly 400 of whom were from APAC.
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