India’s real estate sector is witnessing a significant upsurge in equity investments, projected to reach USD 11 billion in 2024, a remarkable 49% increase from the USD 7.4 billion recorded in 2023. This growth, driven by strong property demand and a resurgence in built-up office and residential asset investments, underscores the sector’s resilience and evolving investor confidence.
According to the joint report ‘Leading the Charge: Crafting the Skylines of Tomorrow’, released by the Confederation of Indian Industry (CII) and CBRE at the CII Realty 2024 conclave, equity inflows from January to September 2024 reached USD 8.9 billion, reflecting an impressive 46% year-on-year growth. The report anticipates that 2024 will mark a historic milestone as equity investments exceed USD 10 billion for the first time. Institutional and collective vehicle investors accounted for nearly 40% of the capital inflows, while developer companies contributed 41%, making them the largest contributors. Domestic investors, primarily developers, injected around USD 6 billion, or 65% of total inflows, while foreign investors added approximately USD 3.1 billion. Among international players, investors from North America and Singapore dominated, contributing a staggering 85% of foreign capital inflows.
Chairman & CEO of CBRE India, highlighted that the introduction of SEBI’s SM-REIT framework will catalyse further growth. This framework opens opportunities for smaller, high-quality assets in Tier-II markets, encouraging strategic capital deployment while enhancing transparency and institutional participation. The report also underscores the diversification of investments into emerging asset classes and Tier-II cities, which will bolster the sector’s long-term growth trajectory. With regulatory support and strong investor confidence, 2024 promises to be a landmark year for India’s real estate equity market, reflecting a balanced mix of domestic and international contributions that will redefine the sector’s growth narrative.
