Domestic investors followed a similar trend as their share declined to 30 percent in 2024 from 35 percent last year, despite growing 36 percent in value terms over the same period, the report said. The percentage increased. Interestingly, joint ventures gained traction in 2024 as foreign investors relied on the local expertise of domestic investors amid the current macroeconomic uncertainty.
The report pointed out that 16 percent of the total investment received in 2024 is co-investment, which has increased 61 times in value. Institutional investment to reach $6.8 billion in 2024, a 61% annual increase.
Despite significant investment in the industrial and warehousing sector, commercial assets dominated with a 35 percent share. “GCC demand is growing in India, with office space expected to witness renewed demand,” the report said.
On the other hand, the residential sector reported an investment of $2 billion, which is 30 percent of the total investment received in 2024. Investments increased by 171% in 2024 compared to last year. Similarly, the industrial and warehousing sector witnessed an annual growth of 203 percent, with the share increasing from 15 percent in 2023 to 28 percent in 2024.
Shrinivas Rao, FRICS, CEO, Vestian said, “Despite a slow start, the real estate sector received significant institutional investment in 2024, surpassing pre-pandemic levels. However, growth in 2025 It is expected to be challenging due to geopolitical friction, slowdown in the global economy, and high levels of inflation.
“On the other hand, the RBI is expected to reduce the repo rate in 2025, which will give a boost to the real estate sector. Increased real estate activity due to low mortgage rates could attract investors. are,” he noted.
Factors such as return-to-office policies, government initiatives like the Production Linked Incentive (PLI) scheme, and greater focus on affordable housing are expected to boost real estate demand in the coming years. This can attract investors, which in turn will increase investor participation, the report added.