India’s real estate sector witnessed a record-breaking year in 2024, attracting $8.87 billion in institutional investments—a staggering 51% growth compared to $5.88 billion in 2023, according to the latest report by real estate consultancy JLL India. This unprecedented surge underscores the growing investor confidence in the sector, driven by robust demand across residential, office, and warehousing assets. Notably, the year also marked a 47% increase in the number of deals, reflecting heightened deal-making activity.
Foreign institutional investors (FIIs) played a pivotal role, contributing 63% of the total inflows. The residential sector emerged as the top asset class, capturing 45% of the investments, followed by office properties at 28% and warehousing at 23%. With 78 deals concluded, 2024 surpassed the sector’s previous high of $8.4 billion recorded in 2007, signalling a milestone year for Indian real estate.
From a sustainability perspective, the influx of institutional funds is expected to accelerate the adoption of green building practices. Many investors are channelling their funds into sustainable developments that focus on energy efficiency, renewable resources, and eco-friendly construction. This shift aligns with global trends, where investors increasingly prioritise Environmental, Social, and Governance (ESG)-compliant projects.
While the investment surge is a promising development for India’s urban economy, it also raises civic questions regarding equitable growth. The focus on high-value asset classes like office buildings and warehousing could widen disparities in urban infrastructure development, leaving affordable housing projects underfunded. Policymakers must balance these priorities to ensure that urbanisation benefits a broader demographic while maintaining sustainable growth.
