Indian Real Estate Attracts $11.4 Billion Investment in 2024 Led by Mumbai & Delhi-NCR
The Indian real estate market witnessed a remarkable surge in equity investments in 2024, drawing in a total of $11.4 billion, marking a 54% annual increase. This growth comes largely from developers and institutional investors, positioning India as a leading real estate destination in the region. According to CBRE’s recent report, Mumbai and Delhi-NCR emerged as the top beneficiaries, together capturing around 50% of the total investments. Both cities are central to India’s urban transformation, with each accounting for approximately 25% of the capital inflows. Other cities such as Bengaluru, Chennai, and Hyderabad followed, contributing a substantial share to the overall investment landscape.
From a broader perspective, the primary driver of investment activity in 2024 was the land and development sites sector, which dominated with a 39% share of total inflows. The office sector, long a backbone of India’s real estate market, also attracted significant capital, receiving 32% of the total equity investments. Retail and residential sectors accounted for smaller portions, with 9% and 8% respectively. The report also highlighted that the industrial and logistics sector—driven by the rise of e-commerce and quick commerce—attracted growing interest, contributing 6% to the overall equity investments. This shift toward logistics and industrial spaces underscores the evolving demands of the Indian economy, driven by technological advancements and changing consumer preferences.
Domestic investors remained the dominant force in this growth, accounting for approximately 70% of the total equity investments in 2024. However, international investors from Singapore, the United States, and Canada contributed a combined 25%, further enhancing India’s appeal as a global investment hub. Developers led the way in capital inflows, capturing 44% of total investments, while institutional investors accounted for 36%. Corporations, REITs, and other categories made up the remaining portion of the investments. The influx of capital into the Indian real estate market is a clear indication of the sector’s resilience and growing attractiveness as an investment opportunity.
Looking forward, industry experts anticipate continued momentum in 2025, with sustained growth expected from institutional investors and domestic developers. Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, noted that increased demand for office spaces, residential units, and mixed-use developments would drive further capital inflows. Additionally, retail and hospitality segments are poised for recovery as businesses adapt to evolving consumer needs. The increasing focus on sustainability and eco-friendly construction practices, especially in logistics and office developments, is also likely to shape the real estate landscape. This shift towards more sustainable and energy-efficient buildings is critical in addressing urban challenges, particularly in rapidly growing cities like Mumbai and Delhi-NCR.
In terms of sustainability, the real estate sector is poised to play a pivotal role in shaping India’s urban future. The surge in investments in land and development sites presents an opportunity to integrate green technologies and sustainable practices from the ground up. Developers are increasingly recognising the need for eco-friendly infrastructure, with energy-efficient buildings and sustainable urban planning becoming key priorities. As the demand for commercial spaces, residential units, and industrial logistics grows, there is a significant opportunity to ensure that these developments are aligned with India’s climate goals. As real estate investments continue to flow into the sector, both domestic and international stakeholders must prioritise sustainability to create urban environments that are not only economically prosperous but also environmentally responsible.
In conclusion, the Indian real estate sector’s performance in 2024, marked by substantial equity investments, is a testament to the industry’s growth potential. Mumbai and Delhi-NCR’s dominance in capital inflows underscores the importance of these cities in driving India’s real estate boom. As the sector continues to evolve, the focus on sustainability, coupled with increasing demand across various asset classes, suggests a promising future for India’s real estate market. The year 2025 is expected to see further investments, with developers and investors alike leveraging the opportunities presented by a rapidly modernising and increasingly sustainable urban landscape.
