New Delhi [India], January 10 : Total equity investment in Indian real estate recorded an all-time high of USD 11.4 bn in 2024, up 54 per cent (YoY) according to a report 'Market Monitor Q4 2024 - Investments' by real estate consultancy firm CBRE.
Singapore, the US, and Canada dominated foreign equity investments in the Indian real estate market in CY 2024. These three countries cumulatively contributed over 25 per cent of the total equity investments in the country's real estate in 2024.
Singapore accounted for a 36 per cent share of the total foreign equity investments in CY 2024, followed by the United States with a 29 per cent share and Canada with 22 per cent. Investments from the UAE also witnessed a significant uptick in CY 2024 compared to the last year.
However, domestic investments remained the primary driver, with a 70 per cent share in total equity investments in CY 2024.
In 2024, the market is driven by a resurgence in capital deployment across built-up assets and sustained momentum in the acquisition of land/development sites. Developers led the way in capital inflows, capturing 44 per cent of the total equity investments in 2024, followed by institutional players at 36 per cent, corporations at 11 per cent, REITs at 4 per cent, and other categories comprising 5 per cent.
The report says Investment activity is expected to maintain its positive trajectory in 2025. Renewed investments in built-up office assets and a strong acquisition pipeline for residential development sites will increase.
Increased investments in the quick commerce/e-commerce space are likely to spur the development of quality warehousing infrastructure.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "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."
India's metros and tier-I cities are expected to continue being the primary recipients of equity inflows.
In addition, tier-II locations are becoming attractive due to a spurt in real estate development, backed by healthy demand, particularly in the residential, mixed-use, I&L, retail, and hotel sectors.
Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said, "We will continue to witness significant growth momentum in investment activity from both institutional investors and domestic developers. This is being driven by a surge in real estate development activity, backed by healthy demand for office, residential, mixed-use, and industrial & logistics spaces. Further, segments such as retail and hospitality are expected to experience renewed interest as the market continues to diversify and adapt to evolving consumer and business needs."
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