Industrial, warehousing leads with $2.5 bn in 2024 realty investments

Office segment investments surged 36% to $2.3 bn, residential rose 46% to $1.1 bn

In 2024, institutional investments in industrial and warehousing surged, tripling from 2023 levels to $2.5 billion (Rs 21,430 crore at an exchange rate of 85.72), according to a Colliers India report. This segment drove overall investments worth $6.5 billion in the sector, with 80 per cent of the growth fuelled by foreign investments, highlighting India's rising manufacturing and logistics capabilities.

 

"Rising demand for superior-quality Grade A developments and evolving supply-chain models will continue to incentivise investors in consolidating industrial and warehousing assets in the country. Furthermore, manufacturing scale-up and healthy consumption levels are likely to attract domestic and global investments in both ready-to-use as well as developmental industrial assets going forward," said Vimal Nadar, senior director and head of research, Colliers India.

   

After a slow start in 2024, office segment investments surged in the second half (H2), reaching $2.3 billion (Rs 19,715 crore), a 36 per cent increase, with approximately 77 per cent of the share coming from foreign investors. The residential segment also grew significantly, rising 46 per cent annually to $1.1 billion (Rs 9,429 crore).

 

The report further noted that multi-city deals accounted for 39 per cent of total investments in 2024, while Mumbai led with $1.6 billion (24 per cent share). Office assets dominated Mumbai’s inflows at 58 per cent, followed by industrial and warehousing at 20 per cent. Bengaluru, Chennai, and Delhi NCR each contributed 8-9 per cent.

 

Institutional investments (both foreign and domestic) in Indian real estate touched $6.5 billion (Rs 55,718 crore) in 2024, marking a substantial 22 per cent increase from the previous year’s $5.4 billion (Rs 46,288 crore), according to real estate consultant Colliers. This surge underscores a robust investor sentiment for Indian real estate, setting an annual record for domestic and foreign investments since 2020.

 

The fourth quarter of 2024 witnessed a strong performance, with investments reaching $1.9 billion (Rs 16,286 crore), nearly double the same period in 2023. Domestic investors played a key role, contributing 43 per cent of the Q4 inflows.

 

“Looking ahead, Tier-I cities will continue to attract the majority of the capital amidst government impetus on infrastructure development and the ‘Make in India’ initiative. While global investors’ confidence is likely to remain upbeat, 2025 is expected to see increased capital deployment from domestic players across office, residential, and industrial assets,” said Badal Yagnik, chief executive officer, Colliers India.

 

In 2024, the industrial and warehousing segment accounted for the highest share of overall real estate investment volumes at 39 per cent, surpassing the office segment. Manufacturing and industrial growth in the country remained robust throughout the year, reflected in macroeconomic indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP).

 

At $4.3 billion (Rs 36,859 crore), foreign inflows continued to drive annual real estate investments, contributing 66 per cent of the total, while domestic investments witnessed a steady rise, surging 27 per cent year-on-year (Y-o-Y).

 

Commenting on the report, Ankur Jalan, chief executive officer of Golden Growth Fund (GGF), a real estate-focused alternative investment fund (AIF), said, “With the government's policy interventions, India is becoming the centre of global investment, paving the way for further acceleration in real estate demand. In the coming years, investments are likely to increase, and institutions will start looking at major micro-markets like South and Lutyens’ Delhi as lucrative investment options.”

 

Garvit Tiwari, director and co-founder of InfraMantra, said, “The buoyant demand that the sector has seen across asset classes and by a wide range of investors, owing to multiple factors—from growing aspirations to enhanced homeownership sentiments and infrastructure development—means institutional investment from both global and domestic investors will further see a spike in the coming years.”