Indian Real Estate Sees 54% Surge in Equity Investments, Totaling USD 11.4 Billion in 2024
Indian real estate has experienced a significant rise in equity investments, attracting USD 11.4 billion in 2024, marking a 54% annual increase, according to CBRE’s latest report. This surge in capital infusion has been primarily driven by developers and institutional investors, fueling growth across various asset classes, including land acquisitions and ongoing developments.
Key Insights from CBRE’s Report:
- Domestic Investments Lead the Charge
Domestic investors contributed the majority of equity investments, accounting for around 70% of the total in 2024. However, international investors also played a crucial role, with Singapore, the US, and Canada together contributing over 25% of the total equity investments in Indian real estate. - Sector-Specific Investments
Land and development sites led the equity investments, representing 39% of the total. Other notable sectors include:- Office sector: 32%
- Retail: 9%
- Residential: 8%
- Industrial and Logistics: 6%
- Hotels: 2%
- Investors’ Distribution
Developers emerged as the largest beneficiaries of equity inflows, capturing 44% of the total investments. Institutional players followed closely with a 36% share, while corporations accounted for 11%, REITs (Real Estate Investment Trusts) for 4%, and other categories for 5%. - Sectoral Growth Drivers
Anshuman Magazine, Chairman & CEO of CBRE, highlighted the sustained momentum in investment activity, particularly in office assets and residential development sites. The growing focus on e-commerce and logistics is expected to further boost the demand for warehousing and logistics infrastructure, presenting new investment opportunities. - Market Transformation
The rise in premium and luxury residential properties has played a pivotal role in transforming India’s real estate market. Sunil Pareek, Executive Director at Assetz Property Group, emphasized that post-COVID resilience, coupled with a trend toward premiumization, has bolstered global investor confidence in the Indian market. - Factors Driving Growth
The rapid growth of the Indian real estate sector can also be attributed to rising disposable incomes, the growing importance of housing as an asset, and the increasing wealth of millionaire founders and employees. Angad Bedi, CMD of BCD Group, noted that these factors are fueling growth across various real estate segments and attracting global investments.
The Indian real estate market’s resilience and promising growth prospects continue to strengthen its position as an attractive and trustworthy destination for investors worldwide.
