India remains a top real estate growth market in the Asia Pacific (APAC) region, driven by various factors such as economic stability, institutional investments, and rising demand in office and logistics segments. The country’s real estate sector has been thriving, attracting both domestic and foreign investors looking for high-yield opportunities.
In recent years, India has positioned itself as one of the fastest-growing real estate markets in the APAC region. This growth can be attributed to the country’s resilient economy, supported by strong domestic demand and favorable government policies. Additionally, increasing foreign direct investments have further boosted investor confidence in the Indian real estate market.
The surge in real estate investments across the Asia Pacific region is a testament to the resilience of the top nine markets, including India. In the previous year, real estate investments in the APAC region grew by 12 percent year-on-year, reaching $155.9 billion. India, along with other key markets like South Korea, Taiwan, and Australia, witnessed significant investment growth during this period.
Sectoral trends in the second half of 2024 revealed that the office and industrial and logistics segments continued to dominate the real estate landscape, accounting for approximately 60 percent of total investments. Retail and hospitality segments also experienced a notable resurgence, reflecting renewed investor interest in diversified asset classes within the APAC region.
India maintained a strong investment momentum in the APAC real estate market during the same period, recording an 88 percent annual rise in investments amounting to $3.0 billion. Office assets attracted the majority of investments in India, followed by the industrial and logistics segment. Mumbai emerged as the leading investment destination, primarily driven by acquisitions in the office segment.
Institutional investments in Indian real estate grew by 22 percent in 2024, reaching $6.5 billion. Foreign investments accounted for 57 percent of total inflows in the second half of 2024, while domestic investments also saw growth. The positive investment sentiment is expected to continue in 2025, supported by favorable economic growth prospects and easing monetary policies.
Overall, the Asia Pacific real estate market remains resilient, with institutional investments showing sustained growth. The positive momentum in the real estate sector sets the stage for a strong performance in the coming year. With inflation easing and economic growth projections remaining healthy, real estate investment volumes in the region are expected to stay strong in 2025.
