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Foreign equity investments in Indian real estate soared to USD 11.4 billion in 2024, a 54% year-on-year increase, led by Singapore (36%), the United States (29%), and Canada (22%), as per a CBRE report. Domestic investments also accounted for 70% of the total inflows, with developers capturing 44%. Metropolitan hubs like Mumbai and Delhi-NCR attracted 50% of the total investment. The last quarter alone saw USD 2.5 billion, driven by office assets and logistics sectors. The surge reflects post-pandemic recovery, favorable regulations, and rising demand for warehousing fueled by e-commerce, positioning the sector for sustained growth and diverse investment opportunities.
The Indian real estate market has seen a significant boost in foreign equity investments in 2024, with Singapore, the United States, and Canada leading the way. According to a recent report by CBRE, these three countries together contributed over 25% of the total foreign investments in the sector.
Singapore emerged as the largest investor, accounting for approximately 36% of foreign equity investments. The United States followed closely with around 29%, while Canada contributed about 22%. Notably, investments from the UAE also increased significantly compared to the previous year, highlighting a growing interest from Gulf nations in the Indian real estate market.
Total foreign equity investment in Indian real estate reached a record high of USD 11.4 billion in 2024, marking a 54% increase from the previous year. This surge can be attributed to several factors, including the ongoing recovery of the economy post-pandemic and a favorable regulatory environment.Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, expressed anticipation of sustained momentum in investment activity, particularly in built-up office assets and residential development sites.
Domestic investments played a crucial role in this growth, making up about 70% of the total equity investments in 2024. Developers were the primary beneficiaries, capturing around 44% of these investments, while institutional players accounted for 36%. Corporations and Real Estate Investment Trusts (REITs) contributed 11% and 4%, respectively, with other categories making up the remaining 5%.
Cities like Mumbai and Delhi-NCR were the top destinations for investment, each attracting about 25% of total inflows. Bengaluru followed with approximately 14%, while Chennai and Hyderabad received about 8% and 6%, respectively. This trend indicates a strong preference for major metropolitan areas, which continue to offer robust growth potential and infrastructure development.
In the last quarter of 2024, total equity investment in real estate reached USD 2.5 billion, reflecting an impressive 91% year-on-year growth. The logistics and warehousing sectors, driven by the rise of e-commerce and quick commerce, are expected to see further investment opportunities. As the demand for efficient supply chain solutions continues to grow, developers are likely to pivot towards these sectors, creating new avenues for both domestic and international investors.
Overall, the Indian real estate market is poised for continued growth, with a mix of domestic and foreign investments driving development across various segments. As the market evolves, stakeholders are encouraged to adapt to changing trends and capitalize on emerging opportunities in this dynamic landscape.
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