India's Real Estate Sector Witnesses Record-High Investments in 2024
Mumbai, Bengaluru, and Chennai lead the way, while Delhi-NCR, Pune, and Hyderabad also see notable investment activity. Domestic investors play a significant role, contributing 79% of the total equity during the quarter.
India Real EstateInvestmentCbre South AsiaDomestic InvestorsTieri CitiesReal Estate PuneOct 14, 2024
The report highlights a significant quarterly equity infusion of USD 2.6 billion for the July-September 2024 period. Mumbai, Bengaluru, and Chennai led the way, accounting for 66% of the total inflows during Q3. Other key cities, including Delhi-NCR, Pune, and Hyderabad, also saw notable investment activity.
This increased momentum is largely attributed to domestic investors, who contributed 79% of the total equity during the quarter. Significant capital also flowed in from Singapore and the United States. Developers played a crucial role, representing 47% of the total equity investments.
Anshuman Magazine, CBRE's Chairman and CEO for India and surrounding regions, emphasized the unprecedented peak in investment activity. He noted that this growth is supported by renewed capital deployment earlier in the year. The expectations remain high for sustained inflows across both traditional and emerging sectors, with collective vehicle investors and developers leading the charge.
With 45% of Q3 investments focused on land and development sites, the office and retail sectors also drew significant interest. Additionally, USD 235 million platforms have emerged in the hotel and residential segments. The focus will likely remain on metro and Tier-I cities, although Tier-II areas are gaining momentum, especially in light of recent SEBI regulations on mid-sized REITs.
CBRE South Asia is a leading real estate services and investment firm, providing a wide range of services including property management, investment management, and research. The company operates across various regions in India and is known for its comprehensive insights into the real estate market.
Frequently Asked Questions
What is the total equity investment in India's real estate sector in the first nine months of 2024?
The total equity investment in India's real estate sector reached a historic USD 8.9 billion in the first nine months of 2024.
Which cities led the way in real estate investments during Q3 of 2024?
Mumbai, Bengaluru, and Chennai led the way in real estate investments during Q3 of 2024, accounting for 66% of the total inflows.
What percentage of the total equity investments in Q3 of 2024 were contributed by domestic investors?
Domestic investors contributed 79% of the total equity investments in Q3 of 2024.
What sectors received significant interest in Q3 of 2024?
The office and retail sectors received significant interest in Q3 of 2024, along with land and development sites which accounted for 45% of the investments.
What role did developers play in the real estate investments in 2024?
Developers played a major role, representing 47% of the total equity investments in 2024.
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