22-04-2025
Real estate sector receives $26.7 billion equity inflows in three years, Mumbai at the forefront
The real estate sector received $26.7 billion in equity investments over the past three calendar years, with Mumbai leading the way. The financial capital attracted the highest inflows at $6.9 billion, representing nearly 26% of total real estate equity investments between CY 2022 and 2024.
According to a report by CBRE and CII, Mumbai, Delhi-NCR, and Bengaluru together accounted for approximately $16.5 billion, making up a combined 62% share of the total investments during this period.
'The total real estate equity investments during CY 2022-24 stood at $26.7 bn in India,' the report said.
"This sustained dominance of gateway cities was driven by a high concentration of investment-grade projects, robust urban infrastructure, a skilled talent pool, strong demand across asset classes, and a steadily formalising real estate ecosystem," the report 'Bricks & Billions - Mapping the Financing Landscape of Real Estate' said.
The CBRE – CII joint report provides a view of the real estate landscape and prevailing financing strategies, including those pertaining to real estate equity and debt investments and AIFs, among other strategic insights.
Land/developments sites attracted the largest share of equity investments, accounting for a 44% share of total inflows between CY 2022-24, followed by built-up office assets, which had a 32% share, the report noted.
Between CY 2022 and 2024, tier-II cities accounted for nearly 10% of total real estate equity investments, amounting to approximately $3 bn. During this period, land/developments sites emerged as the leading investment sector in tier-II cities, attracting approximately 47% share of the total tier-II capital inflows, followed by the industrial and logistics (I&L) sector, which accounted for around 25% share.
Sustained economic momentum in tier-II cities, driven by rapid industrialisation, rising consumption, and expanding infrastructure, have positioned them as attractive destinations for investors, the report said.
'India's real estate sector is entering a new phase of growth, powered by robust capital inflows and a significant pool of dry powder ready for deployment. The strong investor sentiment, especially in built-up office assets and residential developments, is underpinned by sound fundamentals and steady end-user demand. We believe this momentum will sustain as India's structural reforms and corporate evolution continue to attract long-term capital,' said Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
Rishi Kumar Bagla, chairman, CII Western Region and chairman and managing director, BG Electricals and Electronics, said, 'India's real estate sector is rapidly institutionalising, creating a more transparent, risk-mitigated environment that aligns with global investor expectations. Enhanced due diligence frameworks, sustainable development mandates, and stronger compliance protocols are becoming the norm."
