The Indian real estate sector has witnessed a remarkable transformation in recent times, with accelerated capital inflows and significant investment growth. According to a report by Colliers, the total investments in Indian property assets nearly doubled year-on-year across key periods during H2 2024, reaching a record $3 billion. This surge in investment activity can be attributed to confidence in offices, logistics, and retail developments. The upward trajectory carried into Q1 2025, where deal volumes jumped by 133% to 28 transactions totaling $1.2 billion, driven primarily by private equity (PE) investments, which accounted for 88 per cent of the total deal value. The surge was a testament to the strong demand for income-generating and operationally resilient assets.
Rebound in Retail Real Estate Investment
The retail real estate investment rebound was particularly notable, with a 31 per cent increase in global retail inflows during H2 2024. Pankaj Jain, Founder and CMD of SPJ Group, attributed this surge to the confidence of consumers in vibrant community hubs, seamless omnichannel environments, and curated F&B and leisure experiences. For investors, the move into experiential retail offered resilient, long-term rental yields and a strong potential for capital appreciation as footfalls rose.
- Resilient, long-term rental yields
- A strong potential for capital appreciation as footfalls rise
- Vibrant community hubs
- Seamless omnichannel environments
- Curated F&B and leisure experiences
The retail and hospitality segments also experienced a significant rebound, with retail investments increasing 31 per cent YoY to $15 billion during H2 2024.
Key Segments Driving Investment Growth
The Colliers report highlighted that the office and industrial & logistics sectors remained key segments in H2 2024, driving around 60 per cent of the total investments. The retail and hospitality segments were also significant contributors to the growth, with the retail segment increasing 31 per cent YoY to $15 billion during H2 2024.
| Metro City | Investments (H2 2024) |
| Mumbai | $2.3 billion |
| Delhi | $1.1 billion |
| Bangalore | $1.2 billion |
Mumbai attracted almost half of the investments during H2 2024, primarily led by the acquisition of office assets. Experts predicted that this momentum would continue in 2025 in other major metro cities, driven by favourable economic growth prospects and optimistic investment sentiments.
Market Outlook and Policy Support
The confluence of macroeconomic and policy-level factors is fuelling the recent surge in real estate investments across India. Easing monetary policy, combined with abundant global and domestic liquidity, has lowered borrowing costs and made long-term real estate bets more attractive. Complementing this financial backdrop are targeted government initiatives, ranging from urban infrastructure upgrades and affordable housing schemes to dedicated efforts at resolving stalled projects, which have significantly improved investor confidence. “The resounding growth in deal activity confirms that commercial real estate, particularly office assets, is reclaiming its place at the core of institutional portfolios. The maturing REIT market has added transparency and liquidity to the segment, while private equity is now looking beyond yield alone, toward long-term urbanization narratives,” Ashwani Kumar, Pyramid Infratech, said. The growth in real estate investments is expected to continue, driven by strong demand for core and emerging asset classes. The industry is poised for sustained growth, underpinned by the strong demand for income-yielding assets.
Expert Insights
The growth in real estate investments is expected to have a significant impact on the Indian economy. Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group, stated that India’s real estate sector has entered a golden phase of investment growth, marked by both depth and diversity in capital inflows. He predicted that the sector would continue to cement its place as a core pillar of India’s private equity landscape. “We believe real estate will remain the backbone of private‐equity allocations for the foreseeable future,” Dr. Kanodia said. The confluence of macroeconomic and policy-level factors is creating a more transparent, scalable, and resilient investment environment, inviting both institutional capital and private equity into the realty sector at unprecedented levels. “Real estate is not just a cyclical bet, but a long-term value creator. As investor appetite grows, we believe real estate will continue to play a crucial role in the Indian economy,” Dr. In conclusion, the Indian real estate sector has entered a new era of investment growth, driven by confidence in offices, logistics, and retail developments. As investor appetite grows, the sector is expected to remain a key driver of the Indian economy.
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