India's Real Estate Investments Hit Record High in 2024

India's real estate sector saw record equity investments of USD 8.9 billion in the first nine months of 2024, marking a 46% increase from 2023, driven by substantial domestic and foreign inflows. Major cities like Mumbai, Bengaluru, and Chennai led the investment surge, with land and office sectors most attractive to investors.

Total equity investments in India's real estate sector have reached a historic USD 8.9 billion in the first nine months of 2024, marking a 46% year-on-year growth, surpassing 2023's entire USD 7.4 billion investment, revealed a CBRE South Asia report. This surge represents the highest equity investment seen since 2018.

The report points to a significant quarterly equity infusion of USD 2.6 billion for July-September 2024, with Mumbai, Bengaluru, and Chennai leading the way, accounting for 66% of inflows in Q3. Delhi-NCR, Pune, and Hyderabad followed suit with notable investment activity.

This increased momentum is largely attributed to domestic investors who contributed 79% during the quarter, alongside significant capital from Singapore and the United States. Developers played a major role, representing 47% of total equity investments.

Anshuman Magazine, CBRE's Chairman and CEO for India and surrounding regions, highlighted the unprecedented peak in investment activity, supported by renewed capital deployment earlier in the year. Expectations remain high for sustained inflows across both traditional and emerging sectors, with collective vehicle investors and developers leading the charge.

With 45% of Q3 investments focusing on land and development sites, the office and retail sectors each also drew significant interest. Additionally, USD 235 million platforms have emerged in the hotel and residential segments. The focus will likely remain on metro and Tier-I cities, though Tier-II areas are gaining momentum, especially in light of recent SEBI regulations on mid-sized REITs.

(With inputs from agencies.)