Institutional real estate investments in India are on track to exceed 2023 levels, driven by strong activity across office, industrial & warehousing, and residential sectors, according to a report by Colliers.

In the first three quarters of 2024 alone, investments have already reached $4.7 billion, accounting for 87% of the total inflows for the entire year of 2023. This robust performance signals an optimistic outlook for institutional investments in 2025 across various real estate asset classes.

Office and Residential Sectors Drive Demand

“The office sector is likely to have its best year in India, with record absorption fueled by GCCs and domestic demand. The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India.

Office assets have been a key driver, contributing over 40% of inflows during the past four years (2021–2024). Meanwhile, industrial and warehousing, along with residential real estate, are witnessing accelerated momentum. Residential properties, particularly redevelopment projects, have emerged as an attractive investment avenue, further boosting the sector’s growth trajectory.

India Positioned as a Global Investment Hub

India’s strong economic growth prospects have made it a preferred destination for both domestic and foreign institutional investors. Countries such as Singapore, Canada, and the USA continue to lead as major investors in India’s real estate market.

According to the report, 68% of investors in the APAC region believe economic growth will drive the real estate sector’s expansion. Since 2021, institutional inflows into Indian real estate have totaled $19 billion, with investment volumes steadily increasing each year.

2025 Outlook: Sustained Momentum Expected

With equity capital becoming more diversified and domestic investment gaining traction, India’s real estate sector is poised for sustained growth in the coming years. The office sector’s record-breaking absorption rates, coupled with steady demand in residential and industrial assets, position the market for another stellar year in 2025.