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.

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?