Real Estate Reaches New Heights in India with $8.9 Billion Investments in 2024: JLL Report

India’s real estate sector has reached new heights, recording $8.9 billion in institutional investments across 78 deals in 2024. This represents a 51% increase from 2023 and surpasses the previous peak of $8.4 billion in 2007. Residential real estate led the way with 45% of the total investments, highlighting a shift in investor focus.

The surge in investments underscores growing confidence in India’s real estate market, driven by government efforts to enhance transparency and streamline regulations. Notably, domestic investors accounted for 37% of the total investments, a significant rise from the 19% average share between 2019 and 2022. The sector also saw $2.4 billion in platform commitments, earmarked for gradual deployment over the next 3-5 years.

Qualified Institutional Placements (QIPs) emerged as a crucial funding source, raising $2.7 billion. This reflects strong investor confidence and highlights the sector’s post-pandemic recovery. The residential segment attracted $4 billion across 49 deals, marking a fourfold increase from the previous year and surpassing the office sector’s $2.5 billion investments. In 2024, residential equity investments surged to 54%, signaling growing trust in the sector’s long-term potential.

Warehousing also saw significant activity, with a $1.5 billion investment by ADIA and KKR dominating the segment. Meanwhile, emerging asset classes like data centers, student housing, and life sciences gained traction, emphasizing diversification in investment patterns. A $1.7 billion platform commitment between RMZ Digital Infrastructure Partners and Colt Data Centre Services underscored the interest in digital infrastructure.

Looking ahead, JLL anticipates sustained growth in the sector. Two new InvITs targeting $1 billion are set to launch in warehousing, and a REIT aiming for $1 billion is expected to debut in 2025. With a dynamic mix of traditional and emerging sectors, India’s real estate market is poised for continued expansion, attracting both domestic and global capital.