11-Apr-2025 01:23 PM
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Hyderabad, Apr 11 (Reporter): Total equity investment inflows in real estate stood at USD 2.9 billion in Jan-Mar’25, registering 74 percent Year-on-Year (YoY) and 13 percent growth in the sequential quarter, according to latest report, ‘Market Monitor Q1 2025 – Investments’ released by CBRE South Asia Pvt Ltd, India’s leading real estate consulting firm.
Total equity investments during Jan-Mar ’24 stood at USD 1.7 billion.
Investment inflows were primarily fuelled by developer activity and significant interest from real estate investment trusts (REITs) and institutional investors during the quarter, the report stated.
Land/development sites and built-up office assets cumulatively accounted for nearly 74 percent of the total capital inflows during the period, the report revealed.
Retail assets saw a rise in investor interest accounting for 5 percent share in capital inflows during the quarter and 13 per6 Q-o-Q growth due to heightened capital inflows from REITs.
During Jan-Mar’25, Bengaluru led equity real estate investments, followed closely by Mumbai and Delhi-NCR.
Together, the three cities accounted for around 67 percent of the total capital inflows.
In the category of investors, developers remained the primary drivers of capital deployment, contributing 46 percent of the total equity inflows.
REITs followed with a 23 percent share, marking a significant increase from the previous quarter, reflecting growing institutional interest in built-up asset classes.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "India’s real estate sector continues to demonstrate resilience and attract sustained investor interest despite global headwinds. The sharp uptick in capital inflows during Jan-Mar’25 reflects strong fundamentals, robust demand across asset classes, and growing confidence among both domestic and foreign investors. With structural shifts in occupier preferences and evolving market dynamics, we expect this positive momentum to continue across core and emerging segments throughout the year."
Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said, “The first quarter of 2025 has set a strong precedent for the year, with notable investor interest in development assets, particularly in residential and office segments. The surge in activity from REITs and institutional players further highlights the maturity and depth of the Indian real estate investment landscape. We anticipate continued capital deployment in built-up office, warehousing, and alternative asset classes such as data centres and healthcare, backed by a healthy pipeline of opportunities and stable macroeconomic indicators.”
Outlook 2025, Investment activity is projected to maintain its positive trajectory in 2025, primarily fueled by capital flows into built-up office and warehousing assets and robust acquisition pipelines for residential, warehousing, and mixed-use development sites, the report said.
India’s metros and tier-I cities will likely remain the primary recipients of equity inflows. Investment activity is expected to accelerate in the latter half of 2025, contingent upon improvements in global economic conditions and the deployment of dry powder accumulated from an active exit market in 2024, the report added...////...