Equity Investment Hits USD 8.9 Billion, Signaling Strong Market Recovery

National – October 14th, 2024 – In a remarkable turnaround, India’s real estate sector has recorded the highest-ever equity investment since 2018, with a total of USD 8.9 billion invested from January to September 2024. This represents a significant 46% year-on-year increase, surpassing last year’s total of USD 7.4 billion, as detailed in the latest report by CBRE South Asia Pvt. Ltd.

Top Cities Lead the Charge

The report highlights that during the third quarter of 2024, Mumbai, Bengaluru, and Chennai were the standout cities, accounting for over 66% of the total equity investments. Mumbai alone attracted USD 0.96 billion, while Bengaluru and Chennai brought in USD 0.40 billion and USD 0.34 billion, respectively. This urban focus reflects investor confidence in major metropolitan and tier-I cities, with expectations of sustained interest in these markets.

Domestic Investors Dominate

Domestic investors, primarily developers, led the way in equity capital inflows during July-September 2024, contributing approximately 79% of total investments. Meanwhile, foreign investment, mainly from Singapore and the United States, comprised 73% and 22% of the external capital inflows. Developer activity surged, making up nearly 47% of total equity investments, with institutional and collective vehicle investors contributing around 36%.

Sector Insights and Investment Trends

The third quarter of 2024 saw land and development sites dominate the investment landscape, representing 45% of total equity inflows. The office sector followed closely with a 24% share, while the retail sector rebounded, capturing around 22%. Notably, 56% of the total capital invested in site acquisitions was directed towards residential developments, highlighting the ongoing demand in this sector.

Looking Ahead: Sustained Growth Expected

Experts anticipate continued capital inflows into both traditional and emerging sectors in the coming months. With a rebound in office leasing and increased consumer spending, the real estate market is poised for sustained growth. Analysts expect that the combination of a favorable demographic profile and an expanding talent pool will further bolster investments in residential, retail, office, and logistics sectors across India.

As the real estate landscape evolves, the recent data points towards a promising future, with significant opportunities for investors across various segments of the market.