All-time high Equity capital in real estate in first 9 months of 2024, at USD 8.9 bn: CBRE
Dec 23, 2024
New Delhi [India], December 23 : Equity capital inflows into the real estate sector reached an all-time high of USD 8.9 billion in the first nine months of 2024, reflecting a 46 per cent year-on-year growth, according to CBRE report.
Projections indicate equity investments may touch USD 10-11 billion by year-end, with increasing interest in tier-II and tier-III cities.
Delhi-NCR led with a 26 per cent share of total investments, followed by Mumbai and Bengaluru.
Land development and the office sector accounted for 70 per cent of total investments, while residential projects secured 64 per cent of land-related inflows. Foreign investors, primarily from North America and Singapore, contributed USD 3.1 billion, underscoring India's global appeal.
Industrial and logistics leasing activity reached 27.5 million square feet in the first nine months of 2024, with Delhi-NCR, Kolkata, and Bengaluru accounting for 61 per cent of the total.
The third-party logistics (3PL) sector dominated, while demand from engineering, manufacturing, and retail sectors diversified the landscape.
Emerging tier-II cities like Chandigarh, Hosur, and Jaipur also gained traction due to improved infrastructure and rising disposable incomes. Warehousing rental values rose by 2-14 per cent year-on-year, driven by advanced facilities and escalating land costs.
Retail leasing totalled 4.5 million square feet in 2024, with the fashion and apparel segment contributing 38 per cent of the activity.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "This year is set to be a landmark year, marked by record-breaking office leases, a decade-high in residential sales and launches, and soaring consumer confidence in the residential segment. Significant foreign investments and expansions by multinational corporations are further fuelling the sector's growth trajectory."
The office real estate market recorded historic highs, with 53.3 million square feet of leasing activity from January to September 2024.
Bengaluru, Hyderabad, and Pune dominated new office space additions, contributing 66 per cent of the 36.2 million square feet completed during the period.
Global capability centres (GCCs) drove 38 per cent of the leasing activity, while domestic companies contributed 42 per cent, showcasing India's balanced appeal to both global and local businesses.
With robust demand across office, residential, industrial, and retail segments, India's real estate sector is set to maintain its growth trajectory.
Sustainability, technological innovation, and expansion into tier-II and tier-III cities will likely define the industry's future.
