Industrial & Warehousing sector leads with $2.5 Bn investments in 2024
NEW DELHI : In a landmark year for Indian real estate, institutional investments surged to USD 6.5 billion in 2024, reflecting a 22 per cent year-on-year growth—the highest inflow in five years. This growth underscores India’s rising prominence as a real estate investment destination, driven by robust domestic demand and growing foreign interest.
The industrial and warehousing segment emerged as the frontrunner, capturing a 39 per cent share of the total inflows with USD 2.5 billion in investments, marking a 190 per cent increase from 2023. This performance surpasses the office segment, which secured USD 2.3 billion (36 per cent share) in inflows. The growth in industrial assets aligns with India’s strengthening manufacturing base, enhanced logistics infrastructure, and rising global demand for Grade A warehousing facilities.
The year ended on a strong note, with Q4 2024 recording USD 1.9 billion in investments—129 per cent higher than the same period in 2023. Domestic players contributed 43 per cent of Q4 inflows, signalling growing confidence among local investors.
The segment-wise performance in 2024 showcased notable trends across various asset classes. Industrial and warehousing investments nearly tripled year-on-year, driven by large-scale deals and significant contributions from foreign investors, who accounted for over 80 per cent of the inflows.
The office segment, while experiencing a 23 per cent decline in annual inflows compared to 2023, saw a remarkable resurgence in Q4 2024 with investments of USD 825.3 million, marking a 509 per cent year-on-year increase for the quarter. Residential assets also demonstrated robust growth, with investments rising by 46 per cent to USD 1.1 billion, primarily fuelled by strong domestic interest.
In contrast, alternate assets witnessed a steep decline, with investments plummeting by 94 per cent to USD 39.5 million, signalling a significant shift in investor focus.
City-Wise Performance
Mumbai led the investment landscape, drawing USD 1.6 billion in inflows (24 per cent share) in 2024. The city’s office assets accounted for 58 per cent of its real estate investments, followed by industrial and warehousing assets at 20 per cent. Other key cities like Bengaluru, Chennai, and Delhi NCR secured 8-9 per cent shares each.
Badal Yagnik, CEO of Colliers India, remarked, “Private equity investments in Indian real estate saw remarkable momentum in 2024, driven by robust domestic growth and sustained global investor confidence. The industrial and warehousing segment’s stellar performance highlights India’s emergence as a global manufacturing and logistics hub. Tier-1 cities will continue to attract significant capital, supported by government initiatives like ‘Make in India.’”
With growing demand for high-quality industrial spaces and evolving supply chain models, the industrial and warehousing sector is poised to maintain its upward trajectory in 2025. Moreover, a balanced influx from domestic and foreign investors is expected to boost other asset classes, including residential and office segments, in the coming years.