Real estate investments in the Asia Pacific market increased 12 per cent (year-on-year) to reach $155.9 billion in 2024, as India continued to exhibit strong momentum with the second half (H2) witnessing 88 per cent annual rise in investments at $3.0 billion, a new report showed on Tuesday.

Among the nine markets in the APAC region, India, South Korea, Taiwan and Australia saw significant investment growth, each recording more than 30 per cent year-on-year increases during the period, according to a Colliers report.

In India, office assets continued to draw majority of the investments at 47 per cent share, followed by industrial and logistics at 27 per cent share.

Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets.

Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital.

In H2 2024, foreign investments accounted for 57 per cent of total inflows, while domestic investments, at $1.3 billion, saw a notable 8 per cent growth.

“Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favourable economic growth prospects and optimistic investment sentiments,” said Badal Yagnik, Chief Executive Officer, Colliers India.

Moreover, the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025.

Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025, Yagnik noted.

Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing”, said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Overall, real estate investment volumes in the Asia Pacific region are likely to remain sturdy in 2025, the report noted.Real estate investments in the Asia Pacific market increased 12 per cent (year-on-year) to reach $155.9 billion in 2024, as India continued to exhibit strong momentum with the second half (H2) witnessing 88 per cent annual rise in investments at $3.0 billion, a new report showed on Tuesday.

Among the nine markets in the APAC region, India, South Korea, Taiwan and Australia saw significant investment growth, each recording more than 30 per cent year-on-year increases during the period, according to a Colliers report.

In India, office assets continued to draw majority of the investments at 47 per cent share, followed by industrial and logistics at 27 per cent share.

Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets.

Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital.

In H2 2024, foreign investments accounted for 57 per cent of total inflows, while domestic investments, at $1.3 billion, saw a notable 8 per cent growth.

“Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favourable economic growth prospects and optimistic investment sentiments,” said Badal Yagnik, Chief Executive Officer, Colliers India.

Moreover, the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025.

Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025, Yagnik noted.

Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing”, said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Overall, real estate investment volumes in the Asia Pacific region are likely to remain sturdy in 2025, the report noted.