India's Real Estate Sector Draws $11.4 Billion Investment in 2024: Report

The growth in equity investments, largely from developers and institutional investors, channeled its way into land acquisitions as well as developments across all asset classes of real estate.

India's real estate sector attracted equity investments worth $11.4 billion in 2024, up 54 per cent from the previous year, according to real estate consultancy firm CBRE.

The growth in equity investments, largely from developers and institutional investors, channeled its way into land acquisitions as well as developments across all asset classes of real estate.

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Domestic investments remained the mainstay, with about 70 per cent share in total equity investments for the calendar year 2024, the report said.

Singapore, the US and Canada together accounted for more than 25 percent of India's total equity investments in real estate during the year.

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Developers led the way in capital inflows, capturing around 44 per cent of the total equity investments in 2024, followed by institutional players at 36 per cent, corporations at 11 per cent, Real Estate Investment Trusts (REITs) at 4 per cent, and other categories comprising around 5 per cent.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, "We expect to see sustained momentum in investment activity, particularly in built-up office assets and residential development sites.

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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.

In terms of asset classes, equity investments in 2024 were majorly driven by land/development sites, which accounted for 39 per cent of the total share.

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This was followed by the office sector at 32 per cent, retail at 9 per cent, residential at 8 per cent, Industrial and Logistics at 6 per cent, hotels at 2 per cent, and other segments making up more than 4 per cent.

CBRE is also positive about India's Global Capability Centres (GCC) that retained strong leasing in 2024 at 29.4 mn. sq. ft. with a share of 37 per cent of the overall leasing activity across the top nine cities in India and witnessing around 29 per cent year-on-year growth.

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Companies from industries such as Technology, Engineering & Manufacturing and BFSI would primarily lead the demand for both conventional and flexible office spaces for their GCCs with niche sectors like automobiles, semiconductors, and life sciences having a continued requirement.

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