The heightened institutional real estate investments in 2024, are set to further gain momentum in 2025, with office and industrial segments driving the investments.

According to Colliers Asia Pacific Report on 2025 Global Investor Outlook, positive signals of heightened real estate investments in the APAC region augur well for India. Coupled with strong domestic economic growth prospects, India looks uniquely positioned to attract both domestic and foreign institutional investments in the coming years. Interestingly, capital inflows from countries in the APAC region have been on the surge in recent years.

India’s real estate sector continues to attract robust institutional investments, underscoring sustained investor confidence. Since 2021, institutional inflows have totalled USD 19 billion with investment volumes rising each year.  This growth is fuelled by surging demand across core real estate segments. While office assets have driven over 40% of inflows during the last four years (2021-24), both industrial and warehousing and residential sectors are now seeing accelerated momentum in recent years .

Continuing the momentum of the past three years, institutional investments in Indian real estate in 2024 are poised to surpass 2023 levels, driven by robust investments in office, industrial & warehousing, and residential sectors. In the first three quarters of 2024 alone, investments have reached USD 4.7 billion, accounting for 87% of the inflows in the entire year of 2023. This momentum also sets a promising tone for institutional investments across real estate asset classes in 2025.

“The office sector is likely to have its best year in India, with record absorption fuelled 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”, according to Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.

Source: Colliers

Source: Colliers

Asset-wise Split of the Overall Investments by APAC Countries

Source: Colliers

Going forward  in 2025, the evolving real estate landscape in India , according to Vimal Nadar, Senior Director and Head of Research, Colliers India, offers compelling opportunities for investors across both core and non-core segments. The office sector, will continue to present increased opportunity in development assets while rising and evolving consumption patterns and strong demand from e-commerce and third party logistics players will bolster the industrial and warehousing sector. Residential real estate is likely to witness increased investor participation in joint venture platforms, redevelopment projects in Tier 1 cities. Additionally, investments in alternatives such as data centres, senior living , student housing, schools, lifesciences, holiday homes etc, will continue to hold immense long-term potential.