India’s Real Estate Equity Investments to Surpass $10 Bn in 2024: CBRE-CII Report

India’s real estate sector is poised to achieve a significant milestone, with equity investments projected to surpass $10 billion for the first time in 2024, according to a joint report by CBRE South Asia Pvt. Ltd. and the Confederation of Indian Industry (CII).

The report forecasts equity investments in the sector to range between $10 billion and $11 billion in 2024, driven by strong inflows into built-up office assets and a robust land acquisition pipeline for residential projects.

Between January and September 2024 alone, equity capital inflows reached $8.9 billion, marking a significant 46% year-on-year growth.

This period also recorded over 200 deals, with an average deal size of $45 million, a sharp rise from 151 deals with a $36 million average in the same timeframe last year.

Domestic investors, led primarily by developers, accounted for $6 billion, or 65% of total inflows, during the first nine months of 2024. Foreign investors contributed $3.1 billion, with North American and Singaporean investors making up 85% of this segment.

The office sector recorded a remarkable 50% year-on-year growth in investments during January-September 2024, while land/development sites and mixed-use projects collectively attracted over 70% of total inflows.

Geographically, Delhi-NCR, Mumbai, and Bengaluru emerged as top markets, commanding a combined 63% of capital inflows. Delhi-NCR alone accounted for $2.3 billion, representing approximately 26% of the total equity investments. Tier-II and III cities, including Ludhiana, Mohali, and Indore, also witnessed increasing investor interest, collectively securing $0.6 billion in equity inflows.

Debt financing also reached new heights, surpassing $4.7 billion in the January-September period, more than doubling from the previous year. A significant portion of this financing, around 60%, was directed towards Delhi-NCR, Mumbai, and Bengaluru, with multi-city deals accounting for over 30% of the debt financing share.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, stated, “We believe this regulatory support will add much-needed transparency, enabling a more diversified investment base and encouraging institutional participation across these markets. Going ahead, this growing diversification will not only solidify India’s real estate sector but also pave the way for future growth across emerging asset classes.”

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Anil Saraf, Chairman, CII NR Committee on Real Estate and CMD, ASF Group, commented, “The real estate sector is a cornerstone of India’s economy, contributing significantly to GDP and employment. Its role extends beyond construction and housing, driving growth in ancillary industries.”