The CBRE India report titled “Indian Real Estate – Betting on a Capital Future” revealed that real estate developers and investors bought nearly 6,800 acres of land in India between 2018 and 2022 for more than USD 12.2 billion to develop greenfield real estate projects. Majority of the land was acquired after January 2021, with residential and mixed-use land parcels making up almost 60% of the total land investments, followed by office developments, industrial, and logistics. Mumbai, Bengaluru, Hyderabad, and Chennai were the cities with the most land acquisition activity.
Property consultant CBRE India released a report last week discussing land acquisition for real estate development in the country. The report titled, “Indian Real Estate – Betting on a Capital Future” mentions that that real estate developers and investors purchased nearly 6,800 acres of land for over USD 12.2 billion between 2018 and 2022 to develop greenfield real estate projects. Majority of the land discussed was acquired after January 2021.
The report states that residential and mixed-use land parcels make up almost 60% of the total land investments made, attracting over USD 7 billion in capital flows. As a result, the consultant anticipates that there will be significant supply in these two sectors in the coming years. The acquisition of land for greenfield office developments accounted for around 19% of total investments since 2018, followed by industrial and logistics.
During the period of 2018-2022, a total of 73 land deals took place in Mumbai, covering 960 acres with an investment of USD 3.8 billion. Bengaluru recorded 44 land deals, comprising of 700 acres with a value of USD 1.1 billion. In Hyderabad, 24 land deals were made for 970 acres with USD 0.9 billion invested, while Chennai witnessed 47 land deals involving 500 acres and an inflow of USD 0.9 billion. Land acquisition activity took place in other cities across India as well, which spanned nearly 1,300 acres.
According to the report the overall investment in the real estate sector from 2018 to 2022 was USD 43.3 billion. Equity investments in this period amounted to USD 31.8 billion, while debt investments were USD 11.5 billion. Foreign investors, mainly from North America and Singapore, invested over USD 18 billion in equity, representing around 58% of the total equity investments in Indian real estate. North America and Singapore-based investors were the biggest contributors to equity investments since 2018, with shares of around 41% and 8%, respectively.
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