Residential sector with the highest amount of Investments
Residential real estate dominates: Sector claims 45% of total investments.
2024 witnessed the residential sector with the highest amount of INVESTMENTS at 45% share of the total investments, followed by office at 28%. While the office sector dominated institutional investments post-2015, 2024 has witnessed a paradigm shift.
“The residential sector has emerged as a standout performer, attracting more than $4 billion across 49 deals, marking a 4-fold increase from the previous year and outpacing the office sector by 63% in transaction volume. Notably, domestic investors gravitated towards residential properties, while foreign investors maintained their preference for office and warehousing assets.
Also, QIPs have emerged as a dominant funding route, accounting for 57% of the total investment volume in this sector. This shift in investment patterns highlights the evolving dynamics of India’s real estate landscape and its ability to attract diverse capital despite global economic headwinds,
Office investment have experienced a downturn in 2024, with a 17 % decrease compared to 2023. Despite this decline, the sector still attracted $2.5 billion in investments across 18 deals, with a significant 61% of these transactions focusing on core assets.
The residential investment landscape underwent a notable shift in 2024. In 2023, investors predominantly favoured structured debt, which comprised 92% of residential investment volumes, reflecting a cautious stance in an uncertain market.
However, in 2024 equity contributions surged, accounting for 54% of total sector investments. This substantial increase in equity participation indicates a growing investor confidence in the residential sector’s potential for capital appreciation and higher returns. Notably, more than half of the total investment in this sector, approximately $2.3 billion, was raised through QIPs
The residential investment landscape underwent a notable shift in 2024. In 2023, investors predominantly favoured structured debt, which comprised 92% of residential investment volumes, reflecting a cautious stance in an uncertain market. However, in 2024 equity contributions surged, accounting for 54% of total sector investments. This substantial increase in equity participation indicates a growing investor confidence in the residential sector’s potential for capital appreciation and higher returns. Notably, more than half of the total investment in this sector, approximately USD 2.3 billion, was raised through QIPs.
The growth in warehousing investments was primarily fuelled by one significant transaction: Abu Dhabi Investment Authority (ADIA) and KKR jointly invested USD1.5 billion in Reliance Retail Ventures Limited’s warehousing assets. This single deal dominated the market, accounting for 83% of the total transaction volume in warehousing.
“The residential sector has emerged as a standout performer, attracting more than USD 4 billion across 49 deals, marking a 4-fold increase from the previous year and outpacing the office sector by 63% in transaction volume. Notably, domestic investors gravitated towards residential properties, while foreign investors maintained their preference for office and warehousing assets. Also, QIPs have emerged as a dominant funding route, accounting for 57% of the total investment volume in this sector. This shift in investment patterns highlights the evolving dynamics of India’s real estate landscape and its ability to attract diverse capital despite global economic headwinds,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.
As the real estate market matures, investment horizons are expanding beyond traditional sectors. Emerging asset classes such as, data centers, student housing, life sciences and healthcare are gaining traction, reflecting investors’ appetite for diversification and alignment with evolving market dynamics. The largest platform commitment of 2024 was established through a $1.7 billion partnership between RMZ Digital Infrastructure Partners (RDIP) and Colt Data Centre Services (Colt DCS), highlighting the significant investment activity in the digital infrastructure sector.
