Indian Real Estate Sector Sees $11.4 Billion Investment in 2024: CBRE Report
According to a report by CBRE, India’s real estate sector attracted equity investments amounting to $11.4 billion in 2024, marking a 54% increase over the previous year.
Real Estate News:New Delhi, Jan 11 (IANS) - The Indian real estate sector saw a significant surge in equity investments, reaching $11.4 billion in 2024, a 54% increase from the previous year, according to a report by real estate consultancy firm CBRE. This growth was driven by both domestic and international investors, with domestic investments accounting for around 70% of the total equity investments in 2024.
The major contributors to these investments were developers, who captured about 44% of the total equity, followed by institutional players at 36%, corporations at 11%, Real Estate Investment Trusts (REITs) at 4%, and other categories making up around 5%. International investors from Singapore, the US, and Canada cumulatively contributed more than 25% of the total equity investments in Indian real estate during the year.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, stated, “We expect to see sustained momentum in investment activity, particularly in built-up office assets and residential development sites. The increasing focus on e-commerce and quick commerce is set to drive robust growth in the logistics and warehousing sector, creating new opportunities for both developers and investors.”
In terms of asset classes, land/development sites accounted for the largest share at 39%, followed by the office sector at 32%, retail at 9%, residential at 8%, Industrial and Logistics at 6%, hotels at 2%, and other segments making up more than 4%.
CBRE is also optimistic about India’s Global Capability Centres (GCCs), which maintained strong leasing in 2024, covering 29.4 million square feet, representing 37% of the overall leasing activity across the top nine cities in India. This leasing activity registered a 29% year-on-year growth. Companies from sectors such as Technology, Engineering & Manufacturing, and BFSI are expected to drive demand for both traditional and flexible office spaces for their GCCs. Continued demand from niche sectors like automobiles, semiconductors, and life sciences is also anticipated.
CBRE, a leading global commercial real estate services and investment firm, operates in over 100 countries and has a significant presence in India, South-East Asia, the Middle East, and Africa. The company provides comprehensive real estate services, including property sales, leasing, investment management, and consulting. CBRE's insights and reports are widely recognized in the industry for their accuracy and depth, making them a valuable resource for investors and developers in the real estate sector.
Information The real estate sector in India has been a key driver of the country's economic growth, contributing significantly to employment and infrastructure development. The sector has seen substantial investment from both domestic and international sources, driven by factors such as urbanization, rising disposable incomes, and government initiatives to promote real estate development. The introduction of Real Estate Investment Trusts (REITs) has further enhanced the liquidity and investment opportunities in the sector, attracting a diverse range of investors.
CBRE is a leading global commercial real estate services and investment firm, operating in over 100 countries. With a significant presence in India, South-East Asia, the Middle East, and Africa, CBRE provides comprehensive real estate services, including property sales, leasing, investment management, and consulting. The company's insights and reports are widely recognized in the industry for their accuracy and depth, making them a valuable resource for investors and developers in the real estate sector.
Frequently Asked Questions
What was the total equity investment in India’s real estate sector in 2024?
The total equity investment in India’s real estate sector in 2024 was $11.4 billion, marking a 54% increase from the previous year.
Who were the major contributors to the equity investments in 2024?
Developers led the way, capturing around 44% of the total equity investments, followed by institutional players at 36%, corporations at 11%, REITs at 4%, and other categories making up around 5%.
What was the share of domestic investments in the total equity investments in 2024?
Domestic investments accounted for around 70% of the total equity investments in the Indian real estate sector in 2024.
Which asset class saw the highest share of equity investments in 2024?
Land/development sites accounted for the largest share of equity investments at 39%, followed by the office sector at 32%.
What does CBRE predict for the future of the real estate sector in India?
CBRE predicts sustained momentum in investment activity, particularly in built-up office assets and residential development sites. The company also expects robust growth in the logistics and warehousing sector, driven by the increasing focus on e-commerce and quick commerce.