India's Real Estate Investment Market in 2024

The year 2024 was a landmark for India's real estate sector, with institutional investments hitting a record USD 8.9 billion across 78 deals, representing a 51% increase from 2023. This surge in investment volume was accompanied by a 47% increase in deal activity.

Foreign institutional investors dominated the market, contributing 63% of total investments, while domestic investors accounted for 37%. The year also saw USD 2.4 billion in platform commitments earmarked for gradual investment over the next three to five years.

Qualified Institutional Placements (QIPs) emerged as a significant funding source, raising USD 2.7 billion for the sector. These developments underscore strong investor confidence and the sector's post-pandemic rebound.

Investment Landscape Shifts

The investment landscape saw notable shifts in 2024. The residential sector attracted the highest amount of investments at 45%, followed by the office sector at 28%. This represented a change from previous years when the office sector dominated investment activity.

Within residential real estate, equity contributions increased significantly, reaching 54% of total sector investments, compared with predominantly structured debt financing in 2023.

Non-core assets accounted for 77% of total real estate transaction volumes, up from 53% in 2023. This indicates increased risk appetite among investors.

Geographically, the Americas rebounded to contribute 26% of investments, followed by APAC at 20%. The equity route continued to dominate, representing 78% of total investments.

Emerging Asset Classes

Looking ahead, India's real estate market is positioned for further growth and diversification. Several emerging asset classes are gaining traction, including:

• Data centres
• Warehousing
• Student housing
• Life sciences
• Healthcare

The largest platform commitment of 2024 was a USD 1.7 billion partnership in the digital infrastructure sector, highlighting the growing importance of technology-driven real estate and infrastructure.

Warehousing and New Investment Platforms

Two additional InvITs in warehousing were anticipated in 2025, with a combined fundraising target of approximately USD 1 billion.

A new REIT collaboration between a US-based fund house and local partners also aimed to raise an additional USD 1 billion, with the IPO slated for mid-2025.

The warehousing sector recorded significant growth, primarily fueled by a USD 1.5 billion investment from ADIA and KKR in Reliance Retail Ventures Limited's assets.

Office Investment

Although office investments decreased by 17% compared with 2023, the sector continued to attract significant capital, recording approximately USD 2.5 billion across 18 deals.

The shift in investment patterns demonstrates the increasing diversification of India's real estate market and the growing investor interest in sectors beyond traditional office and residential assets.

Outlook for Indian Real Estate

Overall, the private equity investment outlook for Indian real estate remains strong. Continued economic growth, diversification into emerging asset classes, increasing institutional participation and new investment structures are expected to support the market in the coming years.

India's real estate investment trajectory reflects a market that is becoming increasingly diversified, institutionalized and attractive to global and domestic investors.

Key Investment Data

Source and Report

This insight is based on JLL's analysis of India's real estate investment trajectory in 2024. The source page identifies the insight as an investment-focused research publication and provides a downloadable full report.