“Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22% rise in capital inflows at USD 6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investment sentiments. Moreover, the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025,” said Badal Yagnik, Chief Executive Officer, Colliers India.
“Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital. In H2 2024, foreign investments accounted for 57% of total inflows, while domestic investments, at USD 1.3 Billion, saw a notable 8% YoY growth. In addition to the USA, Canada and the EU, investment inflows from other countries in the APAC region will remain buoyant in 2025 and are likely to account for a significant portion of institutional investments in Indian real estate. Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.
“The resilience of the Asia Pacific real estate market is undeniable, with institutional investments rising and demonstrating strong growth last year, setting the stage for a robust 2025. The office segment will continue to witness strong momentum, underpinned by robust leasing and corporate expansions in key markets, and industrial & logistics and residential investments will remain significant, drawing from long-term stable structural demand. We expect retail, hospitality and alternative asset classes gain traction as the year progresses, as investors move to capitalise on recovery momentum and evolving consumer trends,” said Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific.
Overall, the real estate investment volumes in the Asia Pacific region are likely to remain sturdy in 2025, amid easing inflation, healthy economic growth prospects and declining borrowing costs across major markets.