India’s real estate sector witnessed an unprecedented surge in equity capital inflows, reaching an all-time high of USD 8.9 billion in the first nine months of 2024, marking a 46% year-on-year growth, according to a CBRE report. Projections indicate the sector could close the year with equity investments between USD 10-11 billion, underscoring the growing confidence in India’s booming real estate market.
Delhi-NCR leads investment growth
Delhi-NCR emerged as the leader in equity inflows, capturing 26% of total investments, followed by Mumbai and Bengaluru. The capital city’s robust infrastructure and strategic projects attracted significant foreign and domestic capital, setting a benchmark for other metropolitan regions.
Tier-II and Tier-III cities also gained traction, with improved infrastructure and increasing disposable incomes driving investments. Emerging hubs like Chandigarh, Hosur, and Jaipur are becoming hotbeds for real estate expansion.
Key sectors driving growth
Land development and the office sector accounted for 70% of total investments. Residential projects alone captured 64% of land-related inflows, highlighting the renewed interest in housing. CBRE Chairman & CEO Anshuman Magazine noted, “This year is set to be a landmark year, marked by record-breaking office leases, a decade-high in residential sales and launches, and soaring consumer confidence in the residential segment.”
Industrial and logistics real estate also saw significant growth, with 27.5 million square feet of leasing activity. Delhi-NCR, Kolkata, and Bengaluru contributed 61% to this figure, driven by demand from third-party logistics (3PL), engineering, and retail sectors. Warehousing rental values rose by 2-14% year-on-year due to advanced facilities and rising land costs.
Foreign investments fuel expansion
Foreign investors, primarily from North America and Singapore, infused USD 3.1 billion into India’s real estate, reflecting the country’s global appeal. The influx of foreign capital has bolstered the sector’s ability to innovate and expand into new areas, particularly in sustainable and technologically advanced projects.
Record-breaking office real estate activity
The office real estate market hit historic highs, with 53.3 million square feet of leasing activity in the first nine months of 2024. Bengaluru, Hyderabad, and Pune led new office space additions, contributing 66% of the 36.2 million square feet completed during the period. Global capability centres (GCCs) drove 38% of leasing, while domestic companies accounted for 42%.
Future Outlook: sustainability and innovation
India’s real estate sector is poised for sustained growth, driven by sustainability initiatives, tech innovation, and expansion into tier-II and tier-III cities. As the sector continues to break records, it cements its role as a pillar of India’s economic growth and global investment appeal.
