India's Real Estate Sector Set to Surpass USD 10 Billion in Equity Investments in 2024
In 2024, institutional and collective vehicle investors continued to play a significant role in fuelling the Indian real estate market, contributing nearly 40% of the total investments from January to September.
IndiaReal EstateEquity InvestmentsInstitutional InvestorsCbreReal EstateNov 27, 2024
In 2024, institutional and collective vehicle investors remained a major source of capital, accounting for nearly 40% of total investments from January to September. Developer companies led the way, contributing over 41% of the total capital inflows during this period.
Domestic investors, primarily developers, injected nearly USD 6 billion in the first nine months of the year, capturing almost 65% of the overall capital inflows. Foreign investors, on the other hand, contributed around USD 3.1 billion during the same period. Notably, investors from North America and Singapore were the key players, representing roughly 85% of all foreign capital inflows.
The surge in equity inflows, which reached USD 8.9 billion in the first nine months of the year, marks a remarkable 46% year-on-year growth. The report highlights that deal volumes continued to rise, with around 200 transactions reported compared to 151 in the same period last year. The average deal size also grew significantly, climbing to USD 45 million from USD 36 million in 2023. Mid-sized deals, ranging from USD 10 million to USD 50 million, played a pivotal role, representing 56% of total investments.
A resurgence in office sector inflows, growing by 50% year-on-year, underscores its appeal to investors. Alongside office assets, land and development sites attracted more than 70% of total inflows. Residential developments dominated this category, accounting for 64% of the investments, while mixed-use projects and infrastructure developments like data centers, warehouses, and hospitals also drew significant capital.
Major urban hubs such as Delhi-NCR, Mumbai, and Bengaluru led the charge, collectively capturing over 63% of total investments. Delhi-NCR emerged as the top recipient, with USD 2.3 billion in inflows, while tier-II and III cities, including Ludhiana, Mohali, and Coimbatore, collectively attracted USD 0.6 billion.
Debt financing also hit a record, exceeding USD 4.7 billion in January-September 2024, marking a twofold increase compared to the previous year. Approximately 60% of this financing was concentrated in key markets like Delhi-NCR, Mumbai, and Bengaluru, further emphasizing their strategic importance.
This milestone reinforces the resilience and adaptability of India's real estate sector. With increasing deal sizes, strategic foreign investments, and a robust acquisition pipeline, the industry is well-positioned for sustained growth in the coming years. CBRE and CII, leading organizations in the real estate and industrial sectors, predict that this trend will continue to drive the market forward, making India an attractive destination for real estate investments.
Frequently Asked Questions
What is the projected range for equity investments in India's real estate sector in 2024?
The projected range for equity investments in India's real estate sector in 2024 is between USD 10 billion and USD 11 billion.
What percentage of total investments in the Indian real estate market came from institutional and collective vehicle investors in 2024?
In 2024, institutional and collective vehicle investors contributed nearly 40% of the total investments in the Indian real estate market.
Which regions in India are the top recipients of real estate investments in 2024?
Major urban hubs such as Delhi-NCR, Mumbai, and Bengaluru are the top recipients of real estate investments in 2024, capturing over 63% of total investments. Delhi-NCR emerged as the top recipient, with USD 2.3 billion in inflows.
What is the growth rate of equity inflows in the Indian real estate sector in 2024 compared to the previous year?
The equity inflows in the Indian real estate sector in 2024 grew by a remarkable 46% compared to the previous year.
What types of assets are attracting the most investments in the Indian real estate sector in 2024?
Residential developments are dominating the investments, accounting for 64% of the total, while office assets, land and development sites, mixed-use projects, and infrastructure developments like data centers, warehouses, and hospitals are also attracting significant capital.
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