Real estate equity investments hit all-time high at $11.4 billion in 2024

Equity investments in Indian real estate recorded an all-time high of $11.4 bn in 2024, up 54% Y-o-Y, with land and development sites dominating the capital inflows with a 39% share. Among geographies that remained bullish on India, Singapore, the US, and Canada dominated foreign equity investments in the Indian real estate market in the calendar year (CY) 2024, according to CBRE South Asia's latest ‘Market Monitor Q4 2024 – Investments’ report released today.

These three countries contributed more than 25% of the total equity investments in the country’s real estate in 2024. Singapore accounted for a 36% share of the total foreign equity investments in CY2024, followed by the US with a 29% share and Canada with 22%. Investments from the UAE also witnessed a significant uptick in CY2024 compared to the last year. Total equity investment in Indian real estate recorded an all-time high of $11.4 bn in 2024, up 54% YoY.

Domestic investments remained the primary driver, with a 70% share in total equity investments in CY 2024. Developers led the way in capital inflows, capturing 44% of the total equity investments in 2024, followed by institutional players at 36%, corporations at 11%, REITs at 4%, and other categories comprising 5%, the data shows.

In asset classes, equity investments in 2024 were majorly driven by land or development sites, which accounted for 39% of the total share, followed by the office sector at 32%, retail at 9%, residential at 8%, industrial and logistics (I&L) at 6%, hotels at 2%, and other segments making up more than 4%. Mumbai and Delhi-NCR were the top destinations for investment inflows in 2024, each accounting for 25% of the total. Bengaluru followed them at 14%, Chennai at 8%, and Hyderabad at 6%.

During the Oct-Dec’24 quarter, total equity investment in real estate stood at $2.5 billion, with 91% Y-o-Y growth. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, says: "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."

There are expectations of a significant growth momentum in investment activity from both institutional investors and domestic developers, driven by a surge in real estate development activity, backed by healthy demand for office, residential, mixed-use, and industrial & logistics spaces. "Segments such as retail and hospitality are expected to experience renewed interest as the market continues to diversify and adapt to evolving consumer and business needs,” says Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.

In its investment outlook, CBRE has said overall, the investment activity is expected to maintain its positive trajectory in 2025. The key drivers for this growth include renewed investments in built-up office assets and a strong acquisition pipeline for residential development sites. Heightened investments in the quick commerce or e-commerce space in 2024 are also likely to spur the development of quality warehousing infrastructure.