Equity Investments in Indian Real Estate Surge 46% to $8.9 Billion in Q1-Q3 2024: CBRE
Real estate consultant CBRE reports a 46% increase in equity investments in the Indian real estate market, reaching $8.9 billion in the first nine months of 2024, marking the highest level since 2018.
Real EstateEquity InvestmentsCbreDevelopersCapital InflowsReal EstateOct 14, 2024
Equity investments in real estate encompass funds from various 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. The data shows that equity investments in real estate stood 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.
Investment activity in India's real estate market reached a new peak in the January-September 2024 period, driven by a resurgence in capital deployment during the June quarter. Anshuman Magazine, Chairman & CEO of CBRE in India, South-East Asia, Middle East & Africa, stated, “Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, while institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows.”
The equity investments in real estate during the July-September 2024 period amounted to $2.6 billion. Domestic investors, predominantly developers, accounted for about 79% of the capital inflows during this quarter. Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, said, “A rebound in the office leasing market, strong disposal 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.”
With a favorable demographic profile and an affordable talent pool, India is positioned for sustainable and rapid growth in its residential, retail, office, and logistics sectors. Kumar added, “As India's demographic profile continues to pay rich dividends and an affordable talent pool keeps adding at a fast pace, we expect sustainable and rapid growth in India's residential, retail, office, and logistics sectors.”
Frequently Asked Questions
What is the total equity investment in Indian real estate for January-September 2024?
The total equity investment in Indian real estate for January-September 2024 is $8.9 billion.
Who are the leading investors in Indian real estate during the July-September 2024 quarter?
Domestic investors, primarily developers, took the lead with around 79% of the equity capital inflows in the July-September 2024 quarter.
What factors are driving the surge in equity investments in Indian real estate?
A resurgence in capital deployment, a rebound in the office leasing market, strong disposal incomes, and an unprecedented risk appetite for consumer spending and home buying are driving the surge in equity investments in Indian real estate.
What is the expected trend for future capital inflows in the Indian real estate market?
Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, driven by institutional and collective vehicle investors along with developers.
What sectors are expected to see significant growth in India's real estate market?
India's residential, retail, office, and logistics sectors are expected to see significant growth, driven by a favorable demographic profile and an affordable talent pool.
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