Foreign Investors Lead Institutional Investments in 2024: Vestian

Foreign investors accounted for 54% of institutional investments in 2024, contributing $3.7 billion, a 36% rise in value despite a drop in share from 65% in 2023. Similarly, domestic investors saw a 36% increase in investment value, although their share fell to 30% from 35%.
Co-investments gained traction, driven by foreign investors leveraging local expertise amid economic uncertainty. These accounted for 16% of total investments in 2024, marking a 61-fold increase in value.
According to Vestian Research, institutional investments rose to $6.8 billion in 2024, up 61% annually, reversing a four-year decline. This recovery was fueled by robust demand in the industrial and warehousing sector, driven by e-commerce and quick commerce growth.
Despite this, commercial assets remained dominant, holding a 35% share, though down from 61% in 2023 due to a global IT-ITeS slowdown. With rising demand for GCCs in India, office spaces are expected to see renewed interest.
On the other hand, the residential sector reported investments worth USD 2.0 Bn, accounting for 30% of the total investments received in 2024. Investments rose by 171% in 2024 over the previous year. Similarly, the industrial and warehousing sector witnessed an annual increase of 203% with a rise in share from 15% in 2023 to 28% in 2024.
Mr. Shrinivas Rao, FRICS, CEO, Vestian said, “Despite a slow start, the real estate sector received significant institutional investments in 2024, surpassing pre-pandemic levels. However, 2025 is expected to be challenging due to increasing geopolitical friction, a slowdown in the global economy, and elevated inflation levels. On the other hand, RBI is anticipated to reduce the repo rate in 2025, providing impetus to the real estate sector. Heightened real estate activities due to low mortgage rates may attract investors.”
Factors such as return-to-office policies, government initiatives like the Production Linked Incentive (PLI) scheme, and increased focus on affordable housing are anticipated to drive real estate demand in the coming years. This may attract investors, leading to increased investor participation.