This upward trajectory carried into Q1 2025, where deal volumes jumped by 133% to 28 transactions totalling $1.2 billion, as per a report by Grant Thornton Bharat.
The Indian real estate sector has entered a new era of accelerated capital inflows, with total investments nearly doubling year-on-year across key periods. During H2 2024, institutional and private investors injected a record $3 billion into Indian property assets, an 88 per cent increase over H2 2023, driven by confidence in offices, logistics, and retail developments, according to Colliers ‘Asia Pacific Investment Insights H2 2024 report.
This upward trajectory carried into Q1 2025, where deal volumes jumped by 133% to 28 transactions totalling $1.2 billion, as per a report by Grant Thornton Bharat. The surge was driven primarily by private equity (PE) investments, which accounted for 88 per cent of the total deal value, reaffirming institutional interest in income-generating and operationally resilient assets.
Pankaj Jain, Founder and CMD, SPJ Group, said “The surge in retail real estate investment, as reflected in a 31 per cent rebound in global retail inflows during H2 2024 and PE’s commanding 88 per cent share of Q1 2025 deals, signals a profound shift in investor sentiment. For consumers, this capital influx is already delivering vibrant community hubs, seamless omnichannel environments and curated F&B and leisure experiences that turn everyday shopping into a destination. For investors, the move into experiential retail offers resilient, long-term rental yields and a strong potential for capital appreciation as footfalls rise. Thus, we view retail not just as a transactional asset but as a living, breathing ecosystem, and we believe this momentum will only intensify as India’s consumption story deepens.”
As global and domestic funds vie for exposure to income-yielding assets, the industry is set for sustained growth, underpinned by strong demand for core and emerging asset classes. 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 also experienced a significant rebound, with retail investments increasing 31 per cent YoY to $15 billion during H2 2024.
In India, Mumbai attracted almost half of the investments during H2 2024, primarily led by the acquisition of office assets. Experts said this momentum is expected to continue in 2025 in other major metro cities, driven by favourable economic growth prospects and optimistic investment sentiments.
“India’s real estate sector has entered a golden phase of investment growth, marked by both depth and diversity in capital inflows. From residential and commercial to industrial assets, investors are viewing real estate not just as a cyclical bet but as a long-term value creator. As investor appetite grows, we believe real estate will continue cementing its place as a core pillar of India’s private equity landscape. With continued policy support and rate easing, real estate is set to remain the backbone of private‐equity allocations for the foreseeable future,” said Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group.
Moreover, a 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. Together, these dynamics are creating a more transparent, scalable, and resilient investment environment, inviting both institutional capital and private equity into the realty sector at unprecedented levels.
“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.
