NEW DELHI: Equity investments in the real estate sector are expected to surpass $10-11 billion in 2024, according to CBRE-CII report.
Equity capital inflows touched $8.9 billion between January and September 2024, registering a 46% year-on-year growth.
Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE said, “Projection for 2024 equity investments between USD 10 -11 billion, highest-ever, underscores continued investor interest in the growing real estate market in India. However, with SEBI’s SM REIT framework, smaller but high-quality assets in tier-II markets will also present new avenues for strategic capital deployments.”
The average deal size also increased to nearly $45 million in the first nine months of 2024 from about $36 million in 2023.
Mid-sized deals, ranging between $10 to $50 million, represented 56% of the total investment inflows during this period.
The office sector witnessed a resurgence of inflows during January-September 2024, with a nearly 50% year-on-year growth.
Land and development sites and the office sector cumulatively attracted more than 70% of the investment flows during this period.
Residential, retail, and mixed-use sectors also experienced a significant rebound in capital inflows, capturing a healthy share of the overall capital inflows in the first nine months of 2024.
Nearly 64% of the capital inflows in the land and development sites went into residential developments, and the rest were allocated to mixed-use developments, warehousing projects, and the development of retail, data centre, and hospital projects.
Developer companies led the total capital inflows with more than 41% share in this period.
Domestic investors (predominantly developers) invested nearly $6 billion during the first nine months of the calendar year, dominating the overall capital inflows with an almost 65% share.
Gateway cities such as Delhi-NCR, Mumbai, and Bengaluru remained the preferred markets with a cumulative share of over 63% in investment inflows in January to September this year.
Delhi-NCR witnessed the highest share of ~26% in capital inflows (amounting to ~$2.3 billion).
Equity capital inflows into tier-II and III cities also reached nearly $0.6 billion, with Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore collectively accounting for ~76% of these inflows.
Debt financing in the real estate sector soared to a new peak in January-September 2024, surpassing $4.7 billion and marking a more than twofold increase compared to the same period last year.
