Realtors, investors puts $11.4 billion in Indian real estate in 2024: CBRE

Indian real estate attracted equity investments of USD 11.4 billion last year, up 54 per cent annually, mainly from developers and institutional investors, according to CBRE.

The growth in equity investments was made in land acquisitions as well as developments across all asset classes of real estate, real estate consultant CBRE said in a report released on Friday.

Domestic investments remained the primary driver, with around 70 per cent share in total equity investments in 2024 calendar year.

Singapore, the US, and Canada cumulatively contributed more than 25 per cent of the total equity investments in Indian real estate in 2024.

Developers led the way in capital inflows, capturing around 44 per cent of the total equity investments in 2024, followed by institutional players at 36 per cent, corporations at 11 per cent, REITs at 4 per cent, and other categories comprising around 5 per cent.

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 is set to drive robust growth in the logistics and warehousing sector, creating new opportunities for both developers and investors."  In terms of asset classes, equity investments in 2024 were majorly driven by land/development sites, which accounted for 39 per cent of the total share.

This was followed by the office sector at 32 per cent, retail at 9 per cent, residential at 8 per cent, industrial and logistics (I&L) at 6 per cent, hotels at 2 per cent, and other segments making up more than 4 per cent.

Sunil Pareek, Executive Director at Assetz Property Group, said this reflects the sector's remarkable transformation, driven by reforms.

"Post-COVID resilience and premiumisation trend, with luxury and premium properties leading growth in the residential segment, have also enhanced global investor confidence. This overall effect and drawing of investments across commercial, warehousing, residential, data centres and emerging asset classes is reinforcing India's position as a dynamic and trustworthy real estate market," Pareek said.

Angad Bedi, CMD of real estate and construction firm BCD Group, said the Indian real estate industry has been witnessing rapid growth on account of growing disposable incomes, growing importance of housing as an asset post the pandemic and the rise of the millionaire founders and employees among a host of other factors.

"These factors are driving growth across real estate segments which is attracting investors from all across the world," Bedi added.