Equity investments in real estate sector set to hit record USD 10 bn in 2024: CBRE-CII report
Nov 20, 2024
New Delhi [India], November 20 : India's real estate sector is set to witness an a milestone, with equity investments crossing USD 10 billion for the first time in 2024, according to a joint report by CBRE South Asia Pvt. Ltd. and the Confederation of Indian Industry (CII).
The event was inaugurated by D Thara, Additional Secretary, Ministry of Housing and Urban Affairs, alongside prominent industry leaders such as Anil Saraf, Chairman, CII NR Committee on Real Estate, and Ashwinder R Singh, Co-Chairman of the same committee.
The report forecasts equity investments in the sector to range between USD 10 billion and USD 11 billion in 2024, driven by strong inflows into built-up office assets and a robust land acquisition pipeline for residential projects.
Between January and September 2024 alone, equity capital inflows reached USD 8.9 billion, marking a significant 46 per cent year-on-year (YoY) growth.
This period also recorded over 200 deals, with an average deal size of USD 45 million, a sharp rise from 151 deals with a USD 36 million average in the same timeframe last year.
Domestic investors, led primarily by developers, accounted for USD 6 billion, or 65 per cent of total inflows, during the first nine months of 2024.
Foreign investors contributed USD 3.1 billion, with North American and Singaporean investors making up 85 per cent of this segment.
The office sector recorded a remarkable 50 per cent YoY growth in investments during January-September 2024, while land/development sites and mixed-use projects collectively attracted over 70 per cent of total inflows.
Geographically, Delhi-NCR, Mumbai, and Bengaluru emerged as top markets, commanding a combined 63 per cent of capital inflows. Delhi-NCR alone accounted for USD 2.3 billion, representing approximately 26 per cent of the total equity investments.
Tier-II and III cities, including Ludhiana, Mohali, and Indore, also witnessed increasing investor interest, collectively securing USD 0.6 billion in equity inflows.
Debt financing also reached new heights, surpassing USD 4.7 billion in the January-September period, more than doubling from the previous year.
A significant portion of this financing, around 60 per cent, was directed towards Delhi-NCR, Mumbai, and Bengaluru, with multi-city deals accounting for over 30 per cent of the debt financing share.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "We believe this regulatory support will add much-needed transparency, enabling a more diversified investment base and encouraging institutional participation across these markets. Going ahead, this growing diversification will not only solidify India's real estate sector but also pave the way for future growth across emerging asset classes."
Anil Saraf, Chairman, CII NR Committee on Real Estate and CMD, ASF Group, said, "The real estate sector is a cornerstone of India's economy, contributing significantly to GDP and employment. Its role extends beyond construction and housing, driving growth in ancillary industries."
