Equity investments in India's real estate sector surged 46% year-on-year to $8.9 billion during the first nine months of 2024, according to a report by CBRE. This marks the highest level of inflows since 2018. Over the years, equity investments in real estate have shown steady growth, with $5.8 billion in 2018, $6.4 billion in 2019, and around $6 billion annually between 2020 and 2021. In 2022, the sector recorded $7.8 billion, and $7.4 billion in 2023.
Anshuman Magazine, Chairman & CEO of CBRE for India, Southeast Asia, the Middle East, and Africa, attributed this growth to strong capital inflows during the second quarter of 2024, particularly in emerging real estate sectors. Institutional investors, developers, and collective investment vehicles are expected to drive further capital inflows in the coming quarters.
From July to September 2024, equity investments reached $2.6 billion, with domestic investors, mainly developers, contributing 79% of the total. Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, noted that factors like the rebound in office leasing, higher disposable incomes, and rising consumer confidence in real estate purchases were key drivers of this investment growth. Additionally, India’s favorable demographics, including a growing and affordable talent pool, are expected to support long-term growth across key real estate sectors such as residential, retail, office, and logistics.
© 2023 Rera News. All rights reserved.