Equity Investments in Indian Real Estate Surge 46% to $8.9 Billion in Q1-Q3 2024
Equity investments in Indian real estate have surged by 46% to reach $8.9 billion during the first nine months of 2024, as per data from CBRE. This marks the highest level of investment since 2018, driven by a resurgence in capital deployment during the J
Equity InvestmentsReal EstateCbreIndian MarketCapital InflowsReal EstateOct 14, 2024
CBRE notes that equity investments encompass a wide range of sources, including private equity funds, pension funds, sovereign wealth funds, institutional investors, real estate developers, real estate fund-cum-developers, investment banks, corporate groups, and REITs. Over the years, the investment landscape has shown steady growth, with figures standing at $5.8 billion in 2018, $6.4 billion in 2019, $6 billion in 2020, $5.9 billion in 2021, $7.8 billion in 2022, and $7.4 billion in 2023.
The investment activity in India's real estate market reached a new peak in the first nine months of 2024, driven by a resurgence in capital deployment during the June quarter. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, commented, “Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters. Institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows.”
During the July to September 2024 period, equity investments in real estate amounted to $2.6 billion, with domestic investors, particularly developers, taking the lead with a 79% share in equity capital inflows. Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, noted, “A rebound in the office leasing market, strong disposable incomes, and an unprecedented risk appetite for consumer spending and home buying have led to a record flow of investments in the first nine months of 2024.”
The future looks promising as India's demographic profile continues to yield rich dividends, and an affordable talent pool is rapidly expanding. Kumar added, “We expect sustainable and rapid growth in India's residential, retail, office, and logistics sectors, driven by these factors.”
CBRE's role in the real estate market is pivotal, providing comprehensive insights and strategic advice to a diverse range of clients. The company’s expertise spans across various sectors, ensuring that investors and developers are well-informed and strategically positioned to capitalize on the opportunities presented by the Indian real estate market.
Frequently Asked Questions
What is the total equity investment in Indian real estate during January-September 2024?
The total equity investment in Indian real estate during January-September 2024 is $8.9 billion.
How much did equity investments in Indian real estate surge in 2024 compared to the previous year?
Equity investments in Indian real estate surged by 46% in 2024 compared to the previous year.
What sectors are expected to drive the overall capital flows in the upcoming quarters?
Both traditional and emerging sectors, particularly those driven by institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows.
What factors contributed to the record flow of investments in the first nine months of 2024?
A rebound in the office leasing market, strong disposable incomes, and an unprecedented risk appetite for consumer spending and home buying contributed to the record flow of investments.
What role does CBRE play in the Indian real estate market?
CBRE plays a pivotal role in the Indian real estate market by providing comprehensive insights and strategic advice to a diverse range of clients, spanning various sectors.
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