NEW DELHI: The Realty sector recorded $ 8.9 billion total equity investments in the first nine months of 2024, surpassing the $7.4 billion growth for 2023, achieving a 46 per cent year-on-year (Y-o-Y) growth, as per a CBRE South Asia report.
India’s real estate sector has witnessed a huge surge, soaring to the highest recorded levels since 2018. The report highlights a substantial quarterly equity investment of $2.6 billion during July-September 2024.
This growth was led by Mumbai, Bengaluru, and Chennai, which collectively accounted for 66 per cent of the equity inflows in Q3 2024, drawing $0.96 billion, $0.40 billion, and $0.34 billion, respectively.
Delhi-NCR, Pune, and Hyderabad also witnessed a significant share of investments with capital inflows of $ 0.31 billion, $ 0.27 billion, and $ 0.02 billion, respectively.
The rise in investment momentum was primarily fueled by domestic investors, particularly developers, who accounted for nearly 79 percent of the equity capital inflows in the July-September quarter.
Singapore and US accounted for approximately 73 per cent and 22 per cent of the total inflows, among foreign investments,
Developers represented approximately 47 per cent of the total equity investments, a significant uptick during the quarter, followed by institutional and collective vehicle investors at approximately 36 per cent.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, told ANI, “Investment activity in India’s real estate market scaled a new peak in 9M 2024, on the back of a resurgence in capital deployment in Q2 2024 (Apr-Jun ’24).”
He noted that ongoing capital inflows are anticipated in both traditional and emerging sectors in the coming quarters, with institutional and collective vehicle investors, as well as developers, expected to lead the overall capital movements.
Land and development sites accounted for 45 per cent of overall investments during Q3, emerging as the most attractive investment segments.us
The office sector drew in 24 per cent of the investments, while the retail sector witnessed resurgence amounting to a 22 per cent share of the capital inflows.
Among the land acquisitions, approximately 56 per cent of the capital was directed towards residential developments, while the remainder was committed to retail, data centres, warehousing projects, hospitals, and other uses.
Moreover, the sector’s growth was further highlighted by almost $235 million worth investments and development projects were employed in the hotels and residential sectors during the July-September quarter.
It is expected that the trend towards metropolitan and Tier-I cities will continue, even with opportunities in smaller Tier-II cities gaining attention, particularly after Sebi’s recent regulation regarding small and mid sized real estate investment trusts.
