Delhi-NCR gets max real estate investment in Jan-Jun at $633.3 mn: Report

Delhi-NCR's real estate market has attracted highest private equity investment of $633.3 million during January-June period of this year as investors look to encash high demand for prime office space and luxury housing, according to Cushman & Wakefield.

In its latest capital market report, real estate consultant Cushman & Wakefield mentioned that Delhi-NCR attracted $633.3 million of inflows during the first six months of this calendar year.

Out of the total investment in Delhi-NCR, office assets received $483.6 million, while residential $149.6 million.

The consultant noted that the surge in investments in Delhi-NCR has been primarily driven by the office segment, with major equity buy-outs by prominent fund houses. Residential sector in the city has also seen continued interest specially in the high-end and luxury segment.

Across six major cities, the total investment in real estate stood at $3.9 billion during January-June 2024. Multi-city deals dominated fund inflow at nearly $1.9 billion. Bengaluru attracted $509.5 million, Hyderabad $319.9 million, Chennai $234.7 million, Pune $151.7 million and Mumbai $147 million.

Somy Thomas, Managing Director, Valuation & Advisory and Capital Markets, Cushman & Wakefield, said, "$3.9 billion of private equity inflows during the first half of 2024, already surpassing 70 per cent of last year's total, highlights the remarkable growth and investor confidence in India's real estate market."

This surge is primarily driven by infrastructure-related sectors like logistics and industrial, fuelled by significant public investments in multi-modal economic corridors, Thomas said.

"Additionally, strong demand for office and residential spaces further solidifies the market's appeal. With continued positive momentum, we anticipate a buoyant year for private equity investments in the commercial real estate sector, potentially exceeding initial expectations," Thomas added.

Commenting on the investment trend, Delh-NCR based listed realty firm TARC Ltd MD & CEO Amar Sarin said this validates our conviction in the region's potential and underscores the growing demand for luxury living in Delhi and Gurugram.

"The region's strategic location, robust infrastructure and cosmopolitan culture make it an attractive hub for businesses, professionals and families alike. The government's initiatives to enhance connectivity have further boosted investor confidence," Sarin added.

Shiwang Suraj, Founder & Director of Gurugram-based consulting firm InfraMantra, said, "Delhi-NCR boasts one of the best infrastructures and connectivity in the country. Coupled with the presence of numerous MNCs in Gurugram and Noida, this creates an ideal ecosystem for real estate investments. The region's real estate sector is poised to attract even more investments in the coming years."

Gurugram-based realty firm 4S Developers MD Sanjoo Bhadana noted that Delhi-NCR has always been the favourite destination for real estate investment.

"Its strategic location, burgeoning economy, and growing population make it an irresistible proposition for developers and investors alike. With a robust demand for both residential and commercial spaces, the region offers lucrative opportunities for capital appreciation and rental yields," he added.