Indian Real Estate Attracts Whopping Rs 74,815 Crore in Equity Investments This Year: CBRE

The Indian realty sector witnessed a growth in equity investments, reaching $8.9 billion (about Rs 74,815 crore) in the first three quarters of 2024. This is a significant increase compared to $7.4 billion (around Rs 62,210 crore) in 2023, showing a year-on-year growth of 46 per cent, as per a report by CBRE South Asia. The report highlights a sizeable quarterly equity investment of $2.6 billion (Rs 21,857 crore) between July and September 2024. Mumbai, Bengaluru, and Chennai were the leading cities, contributing to 66 per cent of these inflows. They attracted $0.96 billion (Rs 8,070 crore), $0.40 billion (Rs 3,362 crore), and $0.34 billion (Rs 2,858 crore), respectively.The increase in investment was mainly driven by domestic investors, especially construction companies, which made up nearly 79 per cent of the equity inflows during this time. Among foreign investors, Singapore and the US contributed 73 per cent and 22 per cent of the total inflows among foreign investments.Developers made up about 47 per cent of total equity investments, a substantial increase during the quarter. Institutional and collective investors made up about 36 per cent. “Investment activity in the Indian real estate market reached a new high in 9M 2024 on the back of a renewed increase in capital deployment in Q2 2024 (Apr-Jun ’24),” Anshuman Magazine, Chairman and CEO – India, South East Asia, Middle East and Africa, CBRE was cited by ANI. In the third quarter, 45 per cent of the total investments were directed towards land and development, making it the most appealing segment. The office sector received 24 per cent of investments, while retail captured 22 per cent. Of the capital, 56% was spent on land acquisition for residential development while the remaining was used for retail, data centers, warehousing projects, hospitals, and more. The trend of investing in metropolitan and Tier-I cities is expected to continue, but there is growing interest in smaller Tier-II cities, especially following the recent SEBI rule on small and medium-sized real estate mutual funds.