Record Real Estate Equity Investments Reach $11.4 Billion in 2024

Real Estate Equity

In 2024, equity investments in India’s real estate market reached a historic high of $11.4 billion, marking a 54% year-on-year growth. This impressive increase shows the growing interest and confidence in India’s real estate sector. Land and development sites were the biggest contributors, taking up 39% of the total investment.

Countries Leading the Charge in Real Estate Equity

Among the countries investing in Indian real estate, Singapore, the US, and Canada were the top contributors. Together, these three nations made up over 25% of the total equity investments in the country. Singapore led the way with a 36% share, followed by the US at 29%, and Canada at 22%. Investments from the UAE also saw a significant rise compared to the previous year.

Domestic Investments Continue to Lead

Domestic investors played a major role in this growth, holding a 70% share of the total equity investments. Developers were the largest recipients of these investments, receiving 44% of the funds. Other key players included institutional investors (36%), corporations (11%), and Real Estate Investment Trusts (REITs) (4%).

Investment in Various Sectors

When it comes to the types of real estate assets receiving investments, land and development sites took the largest share, followed by office spaces. Here’s how the investments were distributed:

  • Land and Development Sites: 39%
  • Office Sector: 32%
  • Retail: 9%
  • Residential: 8%
  • Industrial and Logistics: 6%
  • Hotels: 2%
  • Other Segments: 4%

Top Investment Destinations

Mumbai and Delhi-NCR were the most attractive cities for real estate investments, each accounting for 25% of the total investments. Other cities such as Bengaluru, Chennai, and Hyderabad also received substantial investment inflows.

Q4 2024 Investment Highlights

In the final quarter of 2024 (October to December), total equity investments in real estate reached $2.5 billion, reflecting a 91% growth compared to the same period in the previous year. This surge signals a strong and continuing interest in the Indian real estate market.

Looking Ahead: Future Growth and Opportunities

Experts predict that this positive investment trend will continue in 2025. Anshuman Magazine, Chairman & CEO of CBRE, suggests that the office space and residential development markets will see ongoing investment. Additionally, sectors like logistics and warehousing, driven by the rise in e-commerce, will continue to grow, offering new opportunities for both developers and investors.

Key Drivers for Continued Investment

The growth in real estate equity investments is expected to remain strong, with institutional investors and developers showing increasing interest. The demand for office, residential, mixed-use, and industrial spaces is expected to fuel this momentum. As the market evolves, segments such as retail and hospitality will also gain more attention.

Conclusion

The Indian real estate market is showing strong growth in equity investments, with a wide range of sectors and regions benefitting from it. The future looks promising for both domestic and international investors, with continued interest expected in office spaces, residential developments, and logistics infrastructure.

In 2025, real estate equity investments are set to remain a key driver of growth in India’s real estate sector.

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