New Delhi, Jan 11 India's real estate sector attracted equity investments to the tune of $11.4 billion in 2024, which represents a 54 per cent increase over the previous year, according to real estate consultancy firm CBRE.
The growth in equity investments, mainly from developers and institutional investors, flowed into land acquisitions as well as developments across all asset classes of real estate. Domestic investments remained the primary driver, with around 70 per cent share in total equity investments in 2024 calendar year, the report said.
Singapore, the US and Canada cumulatively contributed more than 25 per cent of the total equity investments in Indian real estate during the year.
Developers led the way in capital inflows, capturing around 44 per cent of the total equity investments in 2024, followed by institutional players at 36 per cent, corporations at 11 per cent, Real Estate Investment Trusts (REITs) at 4 per cent, and other categories comprising around 5 per cent.
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."
In terms of asset classes, equity investments in 2024 were majorly driven by land/development sites, which accounted for 39 per cent of the total share.
This was followed by the office sector at 32 per cent, retail at 9 per cent, residential at 8 per cent, Industrial and Logistics at 6 per cent, hotels at 2 per cent, and other segments making up more than 4 per cent.
CBRE is also upbeat on India's Global Capability Centres (GCC) which maintained a strong leasing in 2024 at 29.4 mn. sq. ft. with a share of 37 per cent of the overall leasing activity across the top nine cities in India and registering about 29 per cent year-on-year growth.
Companies from sectors including Technology, Engineering & Manufacturing and BFSI would likely drive demand for both traditional and flexible office spaces for their GCCs, with continued demand from niche sectors such as automobile, semiconductors, and life sciences.
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