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India's real estate sector attracted USD 26.7 billion in equity inflows between 2022 and 2024, with Mumbai leading at USD 6.9 billion, according to a CII-CBRE report. Delhi-NCR and Bengaluru followed, with the three metros accounting for 62% of total investments. Land and development sites drew the highest share at 44%, while built-up office assets secured 32%. Tier-II cities gained traction, attracting USD 3 billion, driven by industrial growth and infrastructure upgrades. Institutional investors contributed 33% of the capital. With strong fundamentals and ongoing reforms, the sector is poised for sustained growth, appealing to a diverse mix of global and domestic investors.
India's real estate sector has garnered substantial attention from investors, securing USD 26.7 billion in equity inflows between 2022 and 2024. This data, presented in a joint report by the Confederation of Indian Industry (CII) and CBRE, highlights the sector's resilience and growth potential. Advertisement
Mumbai emerged as the top destination for real estate equity investments, attracting USD 6.9 billion, which accounts for approximately 26% of the total inflows during this period. Delhi-NCR and Bengaluru followed closely, with the three cities collectively receiving around USD 16.5 billion, representing 62% of the total investments. The report attributes this concentration to factors such as a high density of investment-grade projects, robust urban infrastructure, a skilled workforce, and a steadily formalizing real estate ecosystem.
Investors showed a strong preference for land and development sites, which accounted for 44% of the total equity investments. Built-up office assets were the next significant category, comprising 32% of the investments. This trend indicates a strategic focus on long-term growth assets and income-generating properties.
While major metropolitan areas dominated the investment landscape, tier-II cities also attracted attention, securing nearly 10% of the total equity inflows, amounting to approximately USD 3 billion. Within these cities, land and development sites were the primary investment targets, followed by the industrial and logistics sector. The report suggests that rapid industrialization, rising consumption, and expanding infrastructure have made these cities attractive to investors.
Institutional investors contributed to 33% of the real estate equity investments during this period, while developers accounted for approximately 46%. The remaining investments came from a mix of private equity funds, pension funds, sovereign wealth funds, and other financial entities. This diverse investor base underscores the sector's broad appeal and the confidence in its long-term prospects.
The report indicates that India's real estate sector is entering a new phase of growth, driven by robust capital inflows and a significant pool of funds ready for deployment. Strong investor sentiment, particularly in built-up office assets and residential developments, is underpinned by sound fundamentals and steady end-user demand. As structural reforms and corporate evolution continue, the sector is expected to attract sustained long-term capital.
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