In 2024, institutional investment in Indian real estate surged 51% to USD 8.87 billion, driven by strong demand for housing, office spaces, and warehousing. Foreign investors contributed 63% of this total, with the residential sector attracting 45% of inflows. Notably, domestic investor participation rose to 37%. JLL highlighted a 47% increase in deal activity, marking a record year for investments. The positive trend underscores the resilience of India's real estate market.
In a remarkable development for the Indian real estate sector, institutional investment surged by 51% to reach an impressive USD 8.87 billion in 2024, as per a report released by JLL. This robust growth reflects investors’ response to the rising demand for housing, office spaces, and warehousing properties. The investment figure for 2024 marks a significant increase from USD 5.88 billion in the previous year.
Foreign institutional investors played a crucial role, contributing 63% of the total institutional investments in the Indian real estate market. Among various asset classes, the residential segment attracted the most attention, capturing 45% of the inflows, followed by office buildings at 28% and warehousing properties at 23%.
"The year 2024 marks a milestone for India's real estate sector, with institutional investments hitting USD 8.9 billion across 78 deals. This figure stands as the highest on record, eclipsing the 2007 peak of USD 8.4 billion," noted JLL in their report.
The deal activity saw a remarkable uptick, with a 47% increase in the number of transactions compared to previous years. Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL, expressed optimism about India's standing in the global market, stating, "Strong growth, political stability, and diverse investment opportunities positioned India favourably in the global economic context."
Pillai highlighted the noteworthy increase in participation from domestic investors, who accounted for 37% of the investment share in 2024, significantly up from an average of 19% between 2019 and 2022. Additionally, Real Estate Investment Trusts (REITs) experienced a substantial rise, with investments nearing USD 800 million in 2024, a more than three-fold increase from the previous year.
"Looking ahead, QIPs are expected to play a significant role in capital raise as the market is likely to see an increase in newly listed players," she added.
JLL India emphasized that the residential segment is now at the forefront, appealing to a larger share of investor capital, even as office investments faced a decline of 17% compared to 2023. This positive trend in institutional investment underscores the resilience and potential of the Indian real estate market.
Comments