1000 Crore Dollars Invested as Equity in Indian Real Estate in 2024 !! A Record-Breaking Achievement

2024: A Year of Record-Breaking Momentum in Indian Realty Investments

Equity investments in India's real estate market are on the brink of crossing the $10 billion (USD 1000 Crores) threshold for the first time in history. Between January and September 2024, inflows surged to $8.9 billion—a 46% rise compared to the same period last year. This growth was fueled by an increase in domestic investor participation, coupled with a remarkable uptick in deal volumes, which rose to 200 transactions from 151 in 2023.

Developer Companies Lead the Charge in Capital Inflows

Developer companies dominated equity inflows, contributing over 41% of the total. Domestic investors, primarily developers, injected nearly $6 billion during the first nine months, accounting for an impressive 65% share of the overall inflows. Meanwhile, foreign investors added $3.1 billion, with North America and Singapore leading the pack, contributing 85% of the foreign investments.

Regulatory Boost Unlocks New Opportunities in Tier-II Markets

The introduction of Sebi’s SM REIT framework is expected to open doors for strategic capital deployment in tier-II markets, particularly for smaller yet high-quality assets. Anshuman Magazine, CEO of CBRE India, Southeast Asia, Middle East & Africa, emphasized that regulatory support is driving transparency, broadening the investment base, and fostering institutional interest across diverse markets.

Growing Deal Sizes Reflect Market Confidence

The average deal size in 2024 soared to $45 million, up from $36 million in 2023, signaling growing confidence among investors. Residential developments attracted 64% of capital inflows in land and development sites. The remaining investments were funneled into mixed-use projects, warehousing facilities, retail spaces, data centers, and hospitals, underscoring the sector’s versatility and growth potential.