Equity investments in real estate to cross $10-11 billion in 2024
Real Estate

Equity investments in real estate to cross $10-11 billion in 2024

Equity capital inflows touched $8.9 billion between January and September 2024, registering a 46% year-on-year growth. Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE said, "Projection for 2024 equity investments between USD 10 -11 billion, highest-ever, underscores continued investor interest in the growing real estate market in India. However, with SEBI's SM REIT framework, smaller but high-quality assets in tier-II markets will also present new avenues for strategic capital deployments." The average deal size also increased to nearly $45 million in the first nine months of 2024 from about $36 million in 2023. The office sector witnessed a resurgence of inflows during January-September 2024, with a nearly 50% year-on-year growth. Land and development sites and the office sector cumulatively attracted more than 70% of the investment flows during this period. Residential, retail, and mixed-use sectors also experienced a significant rebound in capital inflows, capturing a healthy share of the overall capital inflows in the first nine months of 2024. Nearly 64% of the capital inflows in the land and development sites went into residential developments, and the rest were allocated to mixed-use developments, warehousing projects, and the development of retail, data centre, and hospital projects. Developer companies led the total capital inflows with more than 41% share in this period. Domestic investors (predominantly developers) invested nearly $6 billion during the first nine months of the calendar year, dominating the overall capital inflows with an almost 65% share. Gateway cities such as Delhi-NCR, Mumbai, and Bengaluru remained the preferred markets with a cumulative share of over 63% in investment inflows in January to September this year. Delhi-NCR witnessed the highest share of ~26% in capital inflows (amounting to ~$2.3 billion). Equity capital inflows into tier-II and III cities also reached nearly $0.6 billion, with Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore collectively accounting for ~76% of these inflows.

Debt financing in the real estate sector soared to a new peak in January-September 2024, surpassing $4.7 billion and marking a more than twofold increase compared to the same period last year.

Equity capital inflows touched $8.9 billion between January and September 2024, registering a 46% year-on-year growth. Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE said, Projection for 2024 equity investments between USD 10 -11 billion, highest-ever, underscores continued investor interest in the growing real estate market in India. However, with SEBI's SM REIT framework, smaller but high-quality assets in tier-II markets will also present new avenues for strategic capital deployments. The average deal size also increased to nearly $45 million in the first nine months of 2024 from about $36 million in 2023. The office sector witnessed a resurgence of inflows during January-September 2024, with a nearly 50% year-on-year growth. Land and development sites and the office sector cumulatively attracted more than 70% of the investment flows during this period. Residential, retail, and mixed-use sectors also experienced a significant rebound in capital inflows, capturing a healthy share of the overall capital inflows in the first nine months of 2024. Nearly 64% of the capital inflows in the land and development sites went into residential developments, and the rest were allocated to mixed-use developments, warehousing projects, and the development of retail, data centre, and hospital projects. Developer companies led the total capital inflows with more than 41% share in this period. Domestic investors (predominantly developers) invested nearly $6 billion during the first nine months of the calendar year, dominating the overall capital inflows with an almost 65% share. Gateway cities such as Delhi-NCR, Mumbai, and Bengaluru remained the preferred markets with a cumulative share of over 63% in investment inflows in January to September this year. Delhi-NCR witnessed the highest share of ~26% in capital inflows (amounting to ~$2.3 billion). Equity capital inflows into tier-II and III cities also reached nearly $0.6 billion, with Ludhiana, Mohali, Tuticorin, Hubli, Coimbatore, and Indore collectively accounting for ~76% of these inflows. Debt financing in the real estate sector soared to a new peak in January-September 2024, surpassing $4.7 billion and marking a more than twofold increase compared to the same period last year.

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