India's real estate continues to boom in APAC region as investments surge 88% in H2 2024

India’s real estate market continues to stand out within the Asia-Pacific (APAC) region as a high-growth destination for global investors. Driven by robust economic fundamentals, rapid corporate expansions, and the booming e-commerce sector, India’s office and industrial & logistics segments are spearheading the growth.

According to Colliers’ latest report, “Asia Pacific Investment Insights H2 2024,” real estate investments in India surged by an impressive 88% year-on-year to reach USD 3.0 billion in H2 2024. This remarkable performance underscores India’s continued appeal amid a broader APAC investment surge of 12% YoY, totaling USD 155.9 billion in 2024.

Within the APAC region, South Korea, Japan, and Mainland China dominated the investment landscape, collectively accounting for 59% of the USD 83.2 billion real estate investments in H2 2024. India, however, stood out for its remarkable growth trajectory, driven by institutional investments, favorable economic conditions, and a thriving office and logistics sector. Investment inflows from India recorded an 88% increase during H2 2024, with office assets attracting the majority share of 47%, followed by industrial and logistics assets at 27%. Mumbai alone captured nearly half of these investments, reflecting strong investor interest in Grade-A office spaces.


Badal Yagnik, Chief Executive Officer of Colliers India, highlighted the impressive growth of institutional investments in Indian real estate, stating, “Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22% rise in capital inflows at USD 6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investment sentiments. Moreover, the anticipated continuity in easing of monetary policy, including further reduction in the repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities, along with proactive government policies, are likely to support robust capital deployment across core and non-core assets throughout 2025.”

Office assets led the charge with a stunning 571% increase in investments, reaching USD 1,442 million in H2 2024 compared to just USD 215 million in H2 2023. The industrial and logistics segment saw a 58% rise, attracting USD 831 million, while residential investments grew by 41% to USD 503 million. Notably, retail investments made a comeback with inflows of USD 104 million, reflecting renewed investor confidence in this segment.

Foreign investments played a key role in driving India’s real estate momentum, accounting for 57% of the total inflows in H2 2024. Domestic investments also showed strength, reaching USD 1.3 billion with an 8% YoY growth. In addition to the USA, Canada, and the EU, inflows from other APAC countries are expected to remain buoyant in 2025, contributing significantly to India’s real estate landscape. “Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital. Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.

Across the broader APAC region, the office and industrial & logistics segments continued to dominate investment activity. Office investments remained attractive due to resilient leasing demand and corporate expansions in key markets, including Japan, South Korea, and India. Meanwhile, industrial and logistics assets thrived, bolstered by the ongoing e-commerce surge and the need for supply chain optimization. Marquee deals in APAC during H2 2024 included Blackstone’s acquisition of Seibu Group’s mixed-use assets in Japan for USD 2,571 million and the MFLP REIT’s acquisition of Advance Logistics REIT for USD 1,157 million. In South Korea, Samsung SRA invested USD 849.3 million in office assets, demonstrating continued investor confidence.

“The resilience of the Asia Pacific real estate market is undeniable, with institutional investments rising and demonstrating strong growth last year, setting the stage for a robust 2025,” said Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific. “The office segment will continue to witness strong momentum, underpinned by robust leasing and corporate expansions in key markets. Industrial and logistics, along with residential investments, will remain significant, drawing from long-term stable structural demand. We expect retail, hospitality, and alternative asset classes to gain traction as the year progresses, as investors move to capitalize on recovery momentum and evolving consumer trends.”

Retail and hospitality investments in APAC also saw a resurgence, with retail investments increasing by 31% YoY to USD 15.0 billion in H2 2024. Both Australia and South Korea reported inflows exceeding USD 3.0 billion each in the retail segment, reflecting renewed confidence in asset classes linked to post-pandemic recovery.

Looking ahead to 2025, the APAC and Indian real estate markets are expected to maintain a steady growth trajectory. Factors such as favorable economic fundamentals, demographic shifts, and ongoing sector recoveries will continue to support robust investment activities. As sovereign wealth funds, private equity firms, and REITs actively seek new opportunities, APAC and India are poised to remain prime destinations for global capital.

With strong investor sentiment and consistent capital inflows, India’s real estate market is well-positioned to leverage its growth momentum throughout 2025 and beyond. As international players continue to expand their footprints, India’s real estate sector will likely remain at the forefront of global investment strategies.