Equity investments in Indian real estate reached USD 8.9 billion in Jan-Sep 2024, driven by strong office leasing, disposable income, and consumer spending.
Real estate consultant CBRE noted that the equity investment in real estate is the highest since 2018 calendar year.
Equity investments include those by private equity funds, pension funds, sovereign wealth funds, institutional investors, real estate developers, real estate fund-cum-developers, investment banks, corporate groups, and REITs, etc.
As per the data, the equity investments in real estate stood at USD 5.8 billion in 2018; USD 6.4 billion in 2019; USD 6 billion in 2020; USD 5.9 billion in 2021; USD 7.8 billion in 2022; and USD 7.4 billion in 2023 calendar year.
Investment activity in India’s real estate market scaled a new peak in January-September 2024, on the back of a resurgence in capital deployment during the June quarter, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, said.
“Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, while institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows,” Magazine said.
The equity investments in real estate stood at USD 2.6 billion during the July-September 2024 period.
Domestic investors (predominately developers) took the lead with around 79 per cent share in equity capital inflows in July-September 2024.
“A rebound in the office leasing market, strong disposal incomes and an unprecedented risk appetite for consumer spending and home buying have led to a record flow of investments in the first nine months of 2024,” Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, said.
“As India’s demographic profile continues to pay rich dividends and an affordable talent pool keeps adding at a fast pace, we expect sustainable and rapid growth in India’s residential, retail, office, and logistics sectors,” he added.
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