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Bengaluru: Overall equity investments in 2024 in the real estate sector are set to hit a new record crossing $10 billion for the first time, according to a report by international property consultancy CBRE and Confederation of Indian Industries (CII) released on Wednesday.
This is spurred by investment inflows in built-up office assets and a strong acquisition pipeline for land in the residential sector.
This year, institutional and collective vehicle investors continued to be a major source of capital deployment in the Indian realty sector, accounting for nearly 40 per cent of the overall investments from January to September 2024.
Developer companies injected 41 per cent of the capital inflows. Domestic investors (predominantly developers) invested nearly $6 billion during January-September, dominating the overall capital inflows with an almost 65 per cent share.
Foreign investors contributed about $3.1 billion during the same timeframe. North American and Singaporean investors represented 85 per cent of all foreign capital inflows.
Equity capital inflows touched $8.9 billion, registering a 46 per cent year-on-year (YoY) growth.
Gateway cities such as Delhi-NCR, Mumbai, and Bengaluru remained the preferred markets with a cumulative share of over 63 per cent in investment inflows.
Equity capital inflows into tier-II and III cities also reached nearly $600 million, with Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore collectively accounting for 76 per cent of these inflows.
Debt financing in the real estate sector soared to a new peak, surpassing $4.7 billion in January-September 2024.
Following Securities and Exchange Board of India’s (Sebi’s) Small and Medium Real Estate Investment Trusts (SM REITs) framework, CBRE estimates a potential market size in India of over $60 billion by 2026.
Furthermore, due to its capital-intensive nature, the healthcare sector is anticipated to attract stable, long-term capital inflows. Investment momentum in data centres is also anticipated to persist.