India's Real Estate Sector Crosses USD 10 Billion Equity Milestone

India's real estate sector is poised to exceed USD 10 billion in equity investments in 2024 for the first time. Major urban centers like Delhi-NCR, Mumbai, and Bengaluru lead capital inflows, driven by robust investment in office assets and promising residential projects, as reported by CBRE and CII.

In a historic first, India's real estate sector is predicted to surpass USD 10 billion in equity investments by 2024. This milestone, highlighted in a comprehensive report by CBRE South Asia Pvt. Ltd. and the Confederation of Indian Industry (CII), was presented by D Thara, Additional Secretary at the Ministry of Housing and Urban Affairs, alongside notable figures including Anil Saraf, Chairman of the CII NR Committee on Real Estate.

The detailed analysis forecasts equity investments will range between USD 10 billion and USD 11 billion, fueled by substantial flows into built-up office spaces and an extensive land acquisition strategy for residential initiatives. From January to September 2024, equity influxes hit USD 8.9 billion—a 46% increase from the previous year.

During this period, more than 200 transactions occurred, averaging USD 45 million per deal, compared to 151 transactions with an average of USD 36 million last year. Indian investors, spearheaded by developers, contributed USD 6 billion or 65% of the total inflows. Meanwhile, foreign investments of USD 3.1 billion came predominantly from North American and Singaporean sources, comprising 85% of this share.

Geographical trends indicate that Delhi-NCR, Mumbai, and Bengaluru attracted 63% of capital inflows, with Delhi-NCR alone accounting for USD 2.3 billion, making up 26% of total equity investments. Meanwhile, Tier-II and III cities like Ludhiana, Mohali, and Indore saw growing investor interest, collectively amassing USD 0.6 billion.

Debt financing also reached new peaks, exceeding USD 4.7 billion from January to September, more than double the previous year's amount. Notably, Delhi-NCR, Mumbai, and Bengaluru absorbed 60% of this finance, as multi-city transactions constituted over 30% of debt share.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, remarked that regulatory support will enhance transparency, diversify investment bases, and promote institutional involvement. Anil Saraf added that real estate remains vital to India's economy, significantly boosting GDP and employment, while also driving ancillary sectors.

(With inputs from agencies.)