India Emerges as APAC's Real Estate Hotspot with 88% Investment Surge

India has emerged as a dominant force in the Asia-Pacific real estate landscape, posting a remarkable 88% year-on-year increase in investments during the second half of 2024, according to a report by Colliers. The country attracted $3 billion in real estate capital, significantly outpacing most other markets in the region and reflecting growing confidence from both domestic and international investors.

This surge played a key role in lifting overall real estate investments across the Asia-Pacific, which rose 12% year-on-year to $155.9 billion. While traditional regional heavyweights like South Korea, Japan, and mainland China remained strong, accounting for nearly 60% of all real estate investments in the region, India’s exceptional growth stood out as a clear signal of its rising importance in the APAC property market.

Several factors have contributed to this growth. India’s consistent economic expansion, favorable policy environment, and the government's continued focus on infrastructure development have made its real estate sector increasingly attractive. Additionally, a wave of corporate expansion and return-to-office momentum has driven demand for high-quality office spaces. Office assets represented the largest share of investment activity in India, accounting for nearly half of all real estate investments. Industrial and logistics properties also saw robust interest, capturing around 27% of the investment inflow, driven by the rise of e-commerce and improvements in supply chain infrastructure.

Mumbai led the charge as the country’s top investment destination, drawing in almost half of all real estate investments. Large transactions in commercial office spaces were the key drivers in the city, which continues to solidify its status as a business and financial hub.

India's performance in 2024 also mirrors broader shifts in investor sentiment across the region. Alongside India, countries like Australia and Taiwan also recorded significant gains—each exceeding 30% growth in real estate investments. This signals a broader recovery and reallocation of capital within APAC, with investors increasingly seeking out high-growth, resilient markets.

Looking ahead to 2025, analysts believe India’s momentum will continue. Market expectations of lower interest rates, ongoing policy reforms, and a deepening pool of institutional investors are likely to further boost activity in the sector. India’s diverse asset classes—ranging from office and retail to emerging segments like data centers and warehousing—offer a wide spectrum of opportunities for investors.

In short, India’s real estate sector is not just growing—it’s thriving. With strong fundamentals, increased global interest, and a rapidly evolving urban landscape, the country is poised to become a central pillar in the future of real estate investment across the Asia-Pacific region.