Mumbai, Dec 18: Driven by strong growth and political stability, real estate institutional investments in India reached historic high levels at $8.9 billion across 78 deals in 2024, surpassing the previous 2007 record by 6 per cent ($8.4 billion), a report showed on Wednesday. This represents a substantial 51 per cent increase (to date) from the previous year's $5.8 billion. Also, deal activity intensified, and the year saw an increase in the number of deals by 47 per cent, according to the report by JLL, a leading global commercial real estate and investment management company.
Foreign institutional investors accounted for 63 per cent of total investments, while domestic investors contributed 37 per cent. Additionally, 2024 saw a total of $2.4 billion in platform commitments. These funds are earmarked for gradual investment over the coming 3-5 years, the report noted. Government efforts to enhance transparency and accountability in real estate have given a boost to investor confidence in the last few years. Qualified institutional placements (QIPs) emerged as a significant funding source, raising USD 2.7 billion for the real estate sector.
Real estate investment trusts (REITs) in India have seen a substantial surge in activity recently. Their investments in 2024 reached nearly $800 million, marking a more than threefold increase from 2023 levels.
“Strong growth, political stability, and diverse investment opportunities positioned India favourably in the global economic context. The real estate sector has seen a surge in institutional investments. Along with platform commitments, 2024 will see investor interest cross the $11 billion mark,” said Lata Pillai, senior managing director and head of capital markets, India, JLL.
The year witnessed the residential sector with the highest amount of investments at 45 per cent share of the total investments, followed by office at 28 per cent. “The residential sector has emerged as a standout performer, attracting more than $4 billion across 49 deals, marking a 4-fold increase from the previous year and outpacing the office sector by 63% in transaction volume,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.
Emerging asset classes such as data centres, student housing, life sciences, and healthcare are gaining traction, reflecting investors' appetite for diversification and alignment with evolving market dynamics. In 2025, the Indian real estate market is poised for further growth and diversification, said the report.
