India’s Real Estate Equity investments grew by 46% year-over-year (YoY), or $8.9 billion, from January to September 24. This was more than $7.4 billion invested in stocks in CY 2023.
From July to September 2024, real estate stock assets increased to $2.6 billion in 3 months
Share of domestic and international entities in equity investment:
During the period from July to September 2024, domestic investors, mostly developers, constituted 79% of the equity investment inflow.
Approximately 73% of all foreign capital received originated from Singaporean buyers.
The United States ranked second with 22%.
Institutional and collective vehicle investors secured second place with 36%.
In the third quarter of 2024, developer activity rose, comprising almost 47% of total stock assets.
Real Estate Equity Investments Scaled a New Peak:
The second quarter of 2024 (April to June ’24) saw capital investment ramp up once more, after the highest level of investment activity in India’s real estate sector.
Chairman and Chief Executive Officer of CBRE for India, South-East Asia, Middle East, and Africa, Anshuman Magazine said that in both conventional and newly developed industries the next quarters expected are consistent capital inflows.
Additionally, institutional and collective vehicle investors, in addition to developers, are anticipated to be the primary drivers of overall capital flows.
Key Players in Equity Investments:
Equity investments encompass contributions from pension funds, sovereign wealth funds, and private equity businesses.
Including various real estate fund developers, investment banks, corporate entities, REITs, institutional investors, and real estate developers.
Mumbai, Bengaluru, and Chennai Dominate Equity Investment Scene:
According to the research, Mumbai, Bengaluru, and Chennai were the three cities that led the way in terms of equity investment activity from July to September 2024.
More than sixty-six percent of the overall investments made during this period were made in these three locations collectively.
There is a high probability that investors will continue to steer equity investments towards metropolitan areas and tier-I cities.
Nevertheless, the constraints that SEBI has imposed on SM REITs also emphasize investment possibilities in tier-II areas that are of a higher quality but of a lesser size.
Record Indian Real Estate Investments as Economic Indicators Rise:
The office leasing market is experiencing a rebound, supported by high disposable incomes and strong demand for consumer spending and real estate, leading investments to hit an all-time high in the first nine months of 2024. This was the case because of all of these factors.
Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India said, “We anticipate continuous and swift growth in India’s residential, retail, office, and logistics sectors due to its advantageous demographic profile and the rapid expansion of its cost-effective talent pool.”
India’s Real Estate Market: Land and Development Drive Equity Investments:
From July to September 2024, 45% of assets went to land and building sites, while 24% went to the office sector.
Capital inflows picked up again in the retail sector, which got a 22% share in the same quarter.
The study indicates that approximately 56% of the total funds allocated for purchasing sites and land were directed towards residential developments.
The remainder was allocated for the construction of stores, data centers, warehouses, hospitals, and various other projects.
During the quarter, it was reported that growth platforms valued at $235 million were established in the hotel and residential sectors, alongside the $2.6 billion in investments made from July to September 2024.