Real Estate Equity Investments Reach $8.9 Billion in First Nine Months of 2024: CBRE Report
CBRE South Asia reports that real estate equity investments soared 46% year-on-year to $8.9 billion from January to September 2024, surpassing the $7.4 billion total investments of 2023. Quarterly investments stood at $2.6 billion in Q2 FY25.
Real EstateEquity InvestmentsCbreQ2 Fy25MetrosReal EstateOct 14, 2024
Domestic investors, primarily developers, accounted for 79% of the equity capital inflows in Q2 FY25. Foreign investments were led by Singapore-based investors who contributed nearly 73% of the total foreign capital, followed by the United States with about 22%.
Developer activity gained momentum in Q2 FY25, making up nearly 47% of the total equity investments. Institutional and collective vehicle investors followed with about 36%. The major cities of Mumbai, Bengaluru, and Chennai collectively accounted for over 66% of the total investments during this period.
Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, commented, “The office leasing market has seen a strong rebound, backed by robust disposable incomes and a heightened risk appetite for consumer spending and home buying. This has resulted in a record flow of investments in the first nine months of 2024.”
Investors are expected to continue channeling equity inflows into major metropolitan and tier-I cities. However, the Securities and Exchange Board of India’s (SEBI) SM REIT regulations are also opening up investment opportunities in quality, albeit smaller, assets in tier-II locations.
In Q2 FY25, land and development sites dominated investments with a 45% share, followed by the office sector with 24%. The retail sector also saw a resurgence in capital inflows, capturing a 22% share. About 56% of the total capital inflows in land and site acquisitions were used for residential developments, while the remaining funds were allocated to retail, data centers, warehousing projects, hospitals, and other sectors.
Additionally, investment and development platforms worth approximately $235 million were established during the quarter across the hotel and residential sectors, further boosting the real estate market’s growth.
Frequently Asked Questions
What is the total equity investment in real estate from January to September 2024 according to the CBRE report?
The total equity investment in real estate from January to September 2024 is $8.9 billion.
How much did real estate equity investments increase year-on-year from 2023 to 2024?
Real estate equity investments increased by 46% year-on-year from 2023 to 2024.
Who were the leading domestic investors in the real estate sector in Q2 FY25?
Domestic investors, primarily developers, accounted for 79% of the equity capital inflows in Q2 FY25.
Which cities accounted for the majority of real estate investments in Q2 FY25?
Mumbai, Bengaluru, and Chennai collectively accounted for over 66% of the total investments during Q2 FY25.
What sectors dominated the real estate investments in Q2 FY25?
Land and development sites dominated with a 45% share, followed by the office sector with 24% and the retail sector with 22%.
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