Institutional inflows into Indian realty highest in five years at Rs. 55,640 crore (US$ 6.5 billion)

Institutional investment inflows into Indian real estate reached Rs. 55,640 crore (US$ 6.5 billion) in 2024, a 22% increase from the previous year's Rs. 46,224 crore (US$ 5.4 billion), marking the highest level since 2020, according to a report by Colliers, a real estate consultancy firm. The rise in investment activity was particularly notable in Q4 FY24, which saw inflows of Rs. 16,264 crore (US$ 1.9 billion), more than double the same period in 2023. Domestic investments accounted for 43% of Q4 inflows, highlighting growing confidence among India-based institutional investors alongside sustained interest from international investors.

The industrial and warehousing sector led real estate investments, contributing 39% of the total volume 2024, surpassing the office segment. The strong manufacturing and industrial growth in India, reflected in indicators like the Manufacturing Purchasing Manager’s Index (PMI) and Index of Industrial Production (IIP), supported this performance. The residential sector also grew substantially, with investments rising 46% YoY to Rs. 9,416 crore (US$ 1.1 billion). Foreign inflows comprised 66% of the total investment at Rs. 36,808 crore (US$ 4.3 billion), while domestic investments grew by 27% YoY. Tier-I cities are expected to continue attracting significant capital, with the government's focus on infrastructure development and the 'Make in India' initiative. CEO of Colliers India, Mr. Badal Yagnik, anticipates increased capital deployment from domestic investors across various asset classes in 2025.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.