Equity investments in India’s real estate sector are set to surpass US$ 10 billion in 2024, driven by a 46% year-on-year growth in inflows, reaching US$ 8.9 billion by September.
Image Source: Pexels
Equity investments in Indian real estate sector are projected to exceed US$ 10 billion in 2024, setting a new record, as per CBRE data. Between January and September, equity capital inflows reached US$ 8.9 billion, marking a 46% year-on-year growth. Deal volume maintained strong momentum, with approximately 200 deals during this period compared to 151 deals in the same timeframe last year.
Developer companies accounted for over 41% of total capital inflows during this period. Domestic investors, primarily developers, contributed nearly US$ 6 billion, making up close to 65% of overall capital inflows.
“With SEBI’s SM REIT framework, smaller but high-quality assets in tier-II markets will also present new avenues for strategic capital deployment. We believe this regulatory support will add much-needed transparency, enabling a more diversified investment base and encouraging institutional participation across these markets,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
Foreign investors contributed about US$ 3.1 billion during the same period, with North American and Singaporean investors leading, representing around 85% of total foreign capital inflows.
“The rapid growth of India’s commercial real estate sector, with flex workspaces at the forefront with 21% of gross leasing activity in Q2 2024, highlights the shift in workplace dynamics. At the heart of this transformation is a green-first approach, emphasizing collaboration with occupiers and enterprises to promote sustainability, reduce waste, and prioritize growth in Tier 2 markets for inclusive development,” said Sanjay Choudhary, founder and CEO, Incuspaze.
The average deal size rose to nearly US$ 45 million in the first nine months of 2024, compared to US$ 36 million in 2023. Residential developments attracted 64% of capital inflows in land/development sites, while mixed-use projects, warehousing, retail, data centers, and hospitals accounted for the rest. Delhi-NCR led with 26% of capital inflows, amounting to US$ 2.3 billion. Tier-II and III cities collectively secured nearly US$ 600 million, with Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore contributing 76% of these inflows.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.