Industrial and Warehousing Sectors Drive Record Real Estate Investments in India in 2024: Colliers Report
Gurgaon (Haryana) [India], January 6: According to a new report by Colliers, institutional investments in Indian real estate reached a remarkable USD 6.5 billion in 2024, marking a five-year high and a 22% year-on-year (YoY) increase from USD 5.4 billion in 2023.
The industrial and warehousing sector emerged as the dominant contributor to these investments, attracting a significant USD 2.5 billion. This represents a staggering 190% increase from the previous year and accounts for 39% of the total real estate investments. The office segment, which brought in USD 2.3 billion or 36% of total investments, closely followed the industrial sector in terms of inflows.
This surge in industrial and warehousing investments is primarily driven by robust manufacturing growth, improvements in logistics infrastructure, and India’s increasing position as a global manufacturing hub. Interestingly, more than 80% of these investments were sourced from foreign investors.
The residential real estate sector also performed well in 2024, with investments reaching USD 1.1 billion, marking a 46% increase compared to the previous year. This growth is attributed to strong domestic demand for housing.
Meanwhile, mixed-use properties saw a significant shift in investment patterns, with an impressive 822% rise in inflows, reflecting the evolving nature of investment trends in the Indian real estate market.
Domestic investors played a key role in driving the 2024 investment growth, contributing nearly one-third of the total inflows. These domestic investments increased by 27% YoY, with the fourth quarter of 2024 witnessing an especially strong performance. In Q4, investments reached USD 1.9 billion, more than double the amount seen in the same period of 2023. During this quarter, domestic investments accounted for 43% of the total, signaling increased confidence among Indian investors while international interest remained strong.
Foreign investments continued to dominate the Indian real estate market, contributing 66% of the total inflows. Of these foreign investments, investors from the Asia-Pacific (APAC) region made up nearly one-third, underscoring India’s growing appeal to global investors.
Mumbai captured the largest share of real estate investments in 2024, totaling USD 1.6 billion or 24% of the overall investments. The office sector led Mumbai’s real estate investments, making up 58% of the total, followed by industrial and warehousing investments at 20%.
Other major cities, including Bengaluru, Chennai, and Delhi NCR, attracted significant investment, each accounting for 8-9% of total inflows. Cities such as Hyderabad, Pune, and Kolkata also witnessed strong YoY growth in investments, particularly in the industrial and warehousing segments.
A notable trend in 2024 was the rise in multi-city deals, which accounted for 39% of the total real estate investments. This indicates a more balanced distribution of capital across India’s major real estate markets.
Badal Yagnik, CEO of Colliers India, commented, “APAC investors drove nearly one-third of the foreign inflows into the country’s real estate sector in 2024. Looking ahead, Tier-I cities will continue to attract the majority of capital, aided by government support for infrastructure development and the ‘Make in India’ initiative. While global investor confidence is expected to remain high, 2025 is likely to see increased capital deployment from domestic players across office, residential, and industrial segments.”
Vimal Nadar, Senior Director and Head of Research at Colliers India, added, “With the scale-up of manufacturing and continued healthy consumption levels, both domestic and global investments are expected to flow into ready-to-use and developmental industrial assets in the future.”
