Indian Real Estate Sees Record Foreign Investment of USD 11.4B in 2024
In a remarkable development for India’s real estate sector, total equity investments in the market reached an all-time high of USD 11.4 billion in 2024, reflecting a 54% increase year-on-year. This surge in foreign investments was detailed in CBRE’s ‘Market Monitor Q4 2024 – Investments’ report, showcasing the growing appeal of the Indian market.
Key Foreign Investors in Indian Real Estate
Foreign investments were heavily dominated by three countries: Singapore, the United States, and Canada, collectively contributing over 25% of the total equity inflows. Among them, Singapore emerged as the largest contributor with a 36% share of the foreign equity investments in 2024. The US followed with a 29% share, while Canada accounted for 22%. Additionally, investments from the UAE saw a notable rise when compared to the previous year.
Despite the influx of foreign capital, domestic investments continued to be the leading driver of growth, making up 70% of the total equity investment in 2024.
Market Dynamics and Investment Trends
The Indian real estate market in 2024 was characterized by a renewed focus on capital deployment, especially in built-up assets and the acquisition of land and development sites. Developers were the dominant force in the capital inflows, attracting 44% of the total equity investments. Institutional players followed closely with a 36% share, while corporations, REITs (Real Estate Investment Trusts), and other categories contributed smaller shares of 11%, 4%, and 5%, respectively.
Looking ahead to 2025, CBRE forecasts that investment activity will maintain its upward trajectory. The market is expected to see increased investments in built-up office assets and a robust pipeline of residential development projects. Furthermore, the rapid growth of e-commerce and quick commerce is likely to drive significant investments into warehousing infrastructure.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, commented, “We expect sustained momentum in investment activity, particularly in built-up office assets and residential development sites. The increasing focus on e-commerce and quick commerce is set to fuel strong growth in logistics and warehousing sectors, offering new opportunities for both developers and investors.”
Shifting Focus to Metros, Tier-I, and Tier-II Cities
India’s metros and tier-I cities will continue to dominate as the primary destinations for equity inflows. However, there is also a growing interest in tier-II cities, which are witnessing a surge in real estate development, driven by strong demand across multiple sectors. These include residential, mixed-use developments, industrial & logistics (I&L), retail, and hospitality.
Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, stated, “We are poised to witness significant growth momentum in investment activity from both institutional investors and domestic developers. The surge in real estate development, combined with healthy demand for office, residential, mixed-use, and I&L spaces, is driving this trend. In addition, sectors such as retail and hospitality are expected to gain renewed attention as the market continues to evolve to meet changing consumer and business needs.”
In conclusion, the Indian real estate sector is poised for continued growth in 2025, driven by strong investment inflows, particularly in office, residential, and logistics spaces, as well as a growing interest in emerging locations. With a diversifying market landscape, developers and investors alike are finding new opportunities in this dynamic sector.
