Institutional investment in Indian real estate surged 51% to a record US$ 8.87 billion (Rs. 75,324 crore) in 2024, driven by strong demand across housing, office, and warehousing sectors, according to JLL India. This significantly increased from US$ 5.88 billion (Rs. 49,933 crore) in 2023. Foreign institutional investors (FIIs) contributed 63% of the total investments. The residential sector led the inflows, attracting 45%, followed by office buildings (28%) and warehousing properties (23%). The record investment in 2024 surpasses the previous peak of US$ 8.4 billion (Rs. 71,333 crore) in 2007, with deal activity up 47% YoY.
JLL India highlighted a notable shift with domestic investors, who accounted for 37% of the investments in 2024, up from an average of 19% between 2019-22. Real Estate Investment Trusts (REITs) also significantly increased, with investments tripling to nearly US$ 800 million (Rs. 6,749 crore). Despite a downturn in office sector investments, which fell by 17% compared to 2023, the residential segment has gained increasing attention from investors. JLL anticipates that Qualified Institutional Placements (QIPs) will play a key role in capital raising as more companies are expected to go public.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.