Equity investments in Indian real estate have risen by 46% to $8.9 billion during the first nine months of 2024, as per the real estate consultancy CBRE. This has reflected the peak level of equity investment since the calendar year 2018 and is thus seen as a revitalized market.
The investments come from different sources like private equity funds, pension funds, sovereign wealth funds, institutional investors, real estate developers, fund-cum-developers, investment banks, corporate groups, and Real Estate Investment Trusts (REITs). Diversified investments by these players reflect the optimism each of these entities possesses regarding the scope of the Indian real estate market.
Historical figures portray that in the year 2018, equity investments in real estate were $5.8 billion, in 2019 it was $6.4 billion, in 2020 it was $6 billion, in 2021 it was $5.9 billion, in 2022 it was $7.8 billion, and in 2023 it is a $7.4 billion. The positive trend here indicates that there is an optimistic recovery path and therefore growing optimism among investors.
The huge surge in investment activity reflects a rebound in the deployment of capital in the second quarter of 2024. Sustained capital inflows are forecast in both the traditional and emerging sectors during the quarters ahead with institutional and collective vehicle investors, besides developers, likely to propel overall capital inflow, as said Anshuman Magazine, Chairman & CEO for India, South-East Asia, the Middle East, and Africa at CBRE.
Still, during the July-September 2024 period, equity investments in real estate stood at $2.6 billion, of which the domestic investors accounting for around 79% of the equity capital inflows—were mainly developers.
The Managing Director of Capital Markets and Land at CBRE India attributed record investment flows to a rebound in the office leasing market, excellent disposable incomes, and an unprecedented appetite for consumer spending and home purchases. “As India’s demographic profile continues to yield significant benefits and the affordable talent pool grows rapidly, we anticipate sustainable and robust growth in the residential, retail, office, and logistics sectors,” he added. This very positive outlook highlights a bright future for the Indian real estate market.
