The Indian real estate sector attracted equity investments of $11.4 billion last year, up 54% annually, mainly from developers and institutional investors. Mumbai and Delhi-NCR were the top destinations for investment inflows in 2024, each accounting for around 25% of the total, according to a report by CBRE on December 10.
According to a report by CBRE, Bengaluru was third with around 14% equity investments, followed by Chennai at around 8% and Hyderabad at around 6%.
In terms of asset classes, equity investments in 2024 were majorly driven by land/development sites, which accounted for 39%, followed by the office sector at 32%, retail at 9%, residential at 8%, industrial and logistics (I&L) at 6%, hotels at 2%, and other segments making up more than 4%, a report by CBRE has said.
Domestic investments remained the primary driver, accounting for around 70% of total equity investments in the 2024 calendar year.
Singapore, the US, and Canada contributed more than 25% of the total equity investments in Indian real estate in 2024.
The report noted that developers led the way in capital inflows, capturing around 44% of the total equity investments in 2024, institutional players at 36%, corporations at 11%, REITs at 4%, and other categories at around 5%.
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 will drive robust growth in the logistics and warehousing sector, creating new opportunities for developers and investors.”
Outlook 2025
Gaurav Kumar, Managing Director of Capital Markets and Land, CBRE India, said, โWe will continue to witness significant growth momentum in investment activity from institutional investors and domestic developers. This is 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.โ
