Indian Real Estate Sees 54% Surge In Equity Investments; Reaching USD 11.4 Billion In 2024

Indian real estate attracted record equity investments of USD 11.4 billion in 2024, marking a 54% year-on-year growth. The surge in investments, driven primarily by developers and institutional investors, reflects strong market confidence and a dynamic shift in the sector.

Domestic investments remained the dominant force, accounting for around 70% of total equity inflows in 2024. International participation also played a significant role, with Singapore, the United States, and Canada contributing more than 25% of the total equity investments in the sector.

According to a report by CBRE, a global real estate consultancy, the increase in equity investments was largely driven by land acquisitions and developments across various asset classes, underscoring the market’s diverse appeal to investors.

Developers And Institutional Investors At The Forefront

Developers led the charge, capturing approximately 44% of the total equity investments. Institutional investors followed closely, accounting for 36% of the total, while corporations contributed 11%, REITs 4%, and other categories made up around 5%.

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Anshuman Magazine, Chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa, expressed optimism about the future. “We expect to see sustained momentum in investment activity, particularly in built-up office assets and residential development sites. The growing focus on e-commerce and quick commerce will likely drive robust growth in the logistics and warehousing sector, creating new opportunities for both developers and investors,” he stated.

The report revealed that land and development sites were the primary drivers of investment, making up 39% of total equity inflows. The office sector followed closely with 32%, while retail received 9%, residential 8%, and industrial and logistics 6%. Hotels and other segments accounted for a combined 4% of the total share.

Transformation Of The Indian Real Estate Sector

Sunil Pareek, Executive Director at Assetz Property Group, noted that the equity investment surge reflects the sector’s transformation, particularly after COVID-19. “The post-COVID resilience, along with a trend toward premiumization in the residential sector, has bolstered global investor confidence,” he said. Pareek added that the rise of investments across commercial, warehousing, residential, data centers, and emerging asset classes highlights India’s position as a dynamic and trustworthy real estate market.

Angad Bedi, Chairman and Managing Director of BCD Group, attributed the sector’s rapid growth to multiple factors, including rising disposable incomes and the increasing importance of housing as an asset post-pandemic. He also pointed to the rise of millionaire founders and employees as key contributors to the growing demand across various real estate segments. “These factors are attracting investors from all around the world,” Bedi concluded.

The strong investment performance in 2024 demonstrates that Indian real estate continues to thrive, driven by domestic and global factors, and is likely to maintain its upward trajectory in the years ahead.