Equity Investments in Real Estate Reach $8.9 Billion in Nine Months
Chennai: The real estate sector witnessed a six-year high in equity investments, reaching $8.9 billion in the first nine months of 2024, surpassing the total investments of 2023.
Real EstateEquity InvestmentsProperty MarketInvestment TrendsCbreReal EstateOct 14, 2024
Real estate investments include those from private equity funds, pension funds, and sovereign wealth funds, as well as institutional investors, real estate developers, real estate fund-cum-developers, investment banks, corporate groups, and REITs. According to CBRE, the total equity investments reached $8.9 billion during January to September 2024.
In the past six years, the highest equity investment was recorded in 2022 at $7.8 billion. In 2023, the sector attracted $7.4 billion. On a quarterly basis, equity investments in real estate stood at $2.6 billion in the July-September 2024 period.
Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, attributed the record flow of investments to several factors. He stated, “A rebound in the office leasing market, strong disposal incomes, and an unprecedented risk appetite for consumer spending and home buying have led to this record investment flow in the first nine months of 2024.”
Domestic investors accounted for approximately 79 percent of equity capital inflows in the July-September 2024 period. Singapore-based investors led foreign capital inflows, making up nearly 73 percent, followed by the United States at about 22 percent. Mumbai, Bengaluru, and Chennai were the leading cities for equity investment activity in the third quarter of 2024.
This surge in investments highlights the growing confidence in the real estate sector and its potential for high returns. The robust performance of the office leasing market, coupled with strong consumer spending and home buying, has attracted significant capital from both domestic and international investors. The trend suggests a positive outlook for the real estate market, with expectations of continued growth in the coming months.
Frequently Asked Questions
What is the total equity investment in the real estate sector for the first nine months of 2024?
The total equity investment in the real estate sector for the first nine months of 2024 reached $8.9 billion.
Which cities led the equity investment activity in the July-September 2024 period?
Mumbai, Bengaluru, and Chennai led the equity investment activity in the July-September 2024 period.
What percentage of equity capital inflows came from domestic investors in the July-September 2024 period?
Approximately 79 percent of equity capital inflows came from domestic investors in the July-September 2024 period.
What are the factors contributing to the record flow of investments in the real estate sector?
The factors contributing to the record flow of investments in the real estate sector include a rebound in the office leasing market, strong disposal incomes, and an unprecedented risk appetite for consumer spending and home buying.
Which country contributed the most to foreign capital inflows in the real estate sector in the July-September 2024 period?
Singapore contributed the most to foreign capital inflows in the real estate sector in the July-September 2024 period, making up nearly 73 percent.
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