New Delhi: Capital investments in the Indian real estate sector are expected to grow 49% to $11 billion this calendar year, the highest level ever recorded. This information is given in the joint report of CII (Confederation of Indian Industries) and CBRE (a real estate consultancy).
According to the report, capital investment in real estate was $7.4 billion in 2023. In addition, debt financing in the region has also reached record levels, surpassing $4.7 billion between January and September 2024, which represents a double year-on-year increase.
The report also notes that nearly 60% of the debt financing went to key markets such as Delhi-NCR, Mumbai and Bengaluru. Additionally, agreements between various cities also contributed significantly, accounting for more than 30% of the total debt financing.
The report also notes that “gateway cities” like Delhi-NCR, Mumbai and Bengaluru accounted for more than 63% of the total investment inflows. Delhi-NCR achieved the highest investment share at 26% (around $2.3 billion).
Capital investments reach $8.9 billion in the first nine months of 2024, representing an increase of 46% year-on-year. Total capital investments are expected to reach between $10 billion and $11 billion in 2024, according to the report.
Anshuman Magazine, Chairman and CEO, CBRE, said, “The capital investment forecast of $10-11 billion by 2024 reflects continued investor interest in India’s growing real estate market.”
The report also notes that domestic investors accounted for 65% of total investments ($6 billion) in the first nine months, while foreign investors contributed $3.1 billion.
Emphasizing on sustainable development in the real estate sector, D. Thara, Additional Secretary of the Ministry, said that as the sector grows, there is a need to create energy efficient and sustainable solutions that improve the quality of life.
