Year-end Record: Real Estate Sector posts $8.8 billion Institutional Investments

In 2024, the residential sector accounted for 45% of all investments, while the office sector came in second with 28%. Even though institutional investments were primarily made in the office sector after 2015, a paradigm shift occurred in 2024.

"The residential sector has proven to be an exceptional performer, drawing in over $4 billion in 49 deals—a four-fold increase from the previous year and a 63% increase in transaction volume over the office sector. Notably, foreign investors continued to favor office and warehouse assets while domestic investors tended to favor residential properties "said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

Additionally, QIPs have become a prominent funding source, making up 57% of all investments made in this industry. According to him, this change in investment patterns demonstrates how India's real estate market is changing and how it continues to draw in a variety of capital despite challenges to the world economy.

The amount invested in offices fell by 17% in 2024 as compared to 2023. In spite of this downturn, the industry managed to draw in $2.5 billion in investments through 18 transactions, with a noteworthy 61% of these deals centered around core assets.

But in 2024, equity contributions increased dramatically and made up 54% of all sector investments. A growing investor confidence in the residential sector's potential for capital appreciation and higher returns is indicated by this significant increase in equity participation. Notably, according to JLL's report, QIPs were used to raise roughly $2.3 billion, or more than half of the total investment in this sector.