Real Estate Investments Surge in Asia Pacific, India Shines as Key Market
Real estate investments in the Asia Pacific (APAC) market witnessed a significant 12% year-on-year growth in 2024, reaching a total of $155.9 billion, according to a recent Colliers report. India emerged as a standout performer, showcasing remarkable momentum with an impressive 88% rise in investments during the second half (H2) of 2024, amounting to $3.0 billion.
India Among Top Performers in APAC
Among the nine APAC markets assessed, India, South Korea, Taiwan, and Australia experienced notable investment growth, each recording over 30% year-on-year increases during this period. India’s strong performance highlights its increasing appeal as a preferred investment destination.
Investment Trends in India
Office assets continued to dominate India’s real estate investment landscape, accounting for 47% of total investments. The industrial and logistics sector followed closely, contributing 27% of the investment share. Notably, Mumbai attracted nearly half of the total investments in H2 2024, primarily driven by significant office asset acquisitions.
Foreign and Domestic Investment Dynamics
India’s real estate market has drawn significant foreign capital, with overseas investments making up 57% of total inflows in H2 2024. Meanwhile, domestic investments amounted to $1.3 billion, reflecting an 8% increase compared to the previous year. This steady growth further cements India’s position as a prime investment destination.
Positive Outlook for 2025
“Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22% rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investor sentiment,” said Badal Yagnik, CEO of Colliers India.
The anticipated easing of monetary policy, including potential reductions in the repo rate, is expected to boost liquidity and increase transaction activity across various real estate segments in 2025. Moreover, diverse investment opportunities coupled with proactive government policies are likely to support robust capital deployment in both core and non-core assets throughout the year.
Key Growth Segments for 2025
“While global investors will continue to diversify their real estate portfolios, domestic investors are expected to expand their presence in high-yield segments such as office and industrial & warehousing,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
Overall, real estate investment volumes in the APAC region are projected to remain strong in 2025, reinforcing the sector’s growth potential and investor confidence in emerging markets like India.
