India’s real estate sector will pass US$10 billion in equity investments this year, real estate consultants CBRE and the Confederation of Indian Industry has reported.
Equity capital investments in the sector totalled US $8.9 billion between January and September 2024, 46% above the same period in 2023.
“Projection for 2024 equity investments between US$10-11 billion, highest-ever, underscores continued investor interest in the growing real estate market in India,” said CBRE India CEO Anshuman Magazine last week. With further regulatory support, “smaller but high-quality assets in tier-II markets will also present new avenues for strategic capital deployment.”
India’s residential market saw over 225,000 units sold from January to September 2024. Luxury housing represented 16% of housing sales during that period, up from 6% in the first nine months of 2019.
The country’s office leasing market has surged, reaching 53.8 million square feet in the first nine months of 2024. The report estimates that this will be 70 million square feet by the end of the year.
Retail leasing activity remained steady, with the sector adding 500,000 square feet of new retail space. India’s strongest markets were Bengaluru, Delhi, and Mumbai, which represented almost 60% of total retail leasing.
Domestic investors invested almost US$6 billion in India’s real estate sector from January to September 2024.
Foreign investors contributed around US$3.1 billion. North American and Singaporean investors represented approximately 85% of this figure.
Debt financing in the real estate sector reached US$4.7 billion in the first nine months of this year, a new record.