Delhi-NCR Takes the Lead with Record Inflows

Delhi-NCR emerged as the top destination for real estate investments in India, capturing a substantial 26% share of total capital inflows, which amounted to $2.3 billion between January and September 2024. A report by CII and CBRE highlighted this trend during the CII Realty 2024 conclave, inaugurated by D Thara, Additional Secretary of the Ministry of Housing and Urban Affairs.

The report revealed that total equity investments in Indian real estate for 2024 are projected to surpass $10 billion for the first time, driven by robust office space deals and significant residential land acquisitions.

Impressive Growth in Tier-II and Tier-III Cities

Equity capital inflows into smaller cities such as Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore reached $0.6 billion, accounting for 76% of total tier-II and III inflows. This shift signals growing investor confidence in emerging markets.

Investment Boom in Major Cities

Gateway cities, including Delhi-NCR, Mumbai, and Bengaluru, collectively attracted over 63% of total investments. Domestic investors dominated the market with $6 billion in inflows, while foreign players, particularly from North America and Singapore, contributed $3.1 billion.

Office and Residential Sectors Dominate Capital Inflows

The office sector saw a resurgence, recording nearly 50% year-on-year growth, while residential developments accounted for 64% of the capital inflows into land and development sites. Retail, mixed-use projects, and data centers also attracted significant investments.

Rising Deal Sizes and Investor Confidence

The average deal size climbed to $45 million in 2024, up from $36 million last year. Mid-sized deals ($10-$50 million) accounted for 56% of total investment inflows. Institutional and collective vehicle investors continued to play a significant role, contributing nearly 40% of the overall inflows.

Debt Financing Hits Record Levels

Debt financing in the sector also peaked, crossing $4.7 billion in the first nine months of 2024—more than double the amount seen in 2023. Around 60% of this financing was concentrated in Delhi-NCR, Mumbai, and Bengaluru, reflecting their critical role in driving the sector’s growth.

Regulatory Reforms to Boost Transparency

Anshuman Magazine, Chairman and CEO of CBRE, underscored the importance of SEBI’s SM-REIT framework in enabling strategic investments in high-quality assets, particularly in tier-II cities. “This regulatory support will drive diversification and institutional participation, further strengthening India’s real estate market,” he said.

Looking Ahead: Growth Across Emerging Asset Classes

The sector is poised for continued growth as investments diversify across asset classes such as mixed-use developments, warehousing, and healthcare infrastructure. According to Anil Saraf, Chairman of CII’s Northern Region Committee on Real Estate, “Real estate remains a cornerstone of India’s economy, contributing significantly to GDP and employment while driving ancillary industries forward.”

As Indian real estate enters a new era of record-breaking investments, the focus on transparency, innovation, and sustainability will pave the way for long-term growth across diverse markets.