Equity Investments in Realty at $8.9 Bn in Nine Months

Chennai: Equity investments in the real estate sector made a six-year high in the nine months of the calendar year 2024. At $8.9 billion, it was higher than the total investments made in the entire year of 2023.

Real estate investments include those by private equity funds, pension funds, and sovereign wealth funds. institutional investors, real estate developers, real estate fund-cum-developers, investment banks, corporate groups, and REITs, touched $8.9 billion during January-September 2024, according to CBRE.

In the past six years, equity investments saw a high of $7.8 billion in the entire year of 2022. In 2023, the sector attracted $7.4 billion.

On a quarterly basis, equity investments in real estate stood at $2.6 billion in the Jul-Sep’24 period.

“A rebound in the office leasing market, strong disposal incomes and an unprecedented risk appetite for consumer spending and home buying has led to a record flow of investments in the first 9 months of 2024,” said Gaurav Kumar, Managing Director, of Capital Markets and Land, CBRE India.

Domestic investors accounted for approximately 79 per cent of equity capital inflows in July-September 2024. Singapore-based investors made up nearly 73 per cent of foreign capital inflows, followed by the United States at about 22 per cent. Mumbai led the equity investment activity in Jul-Sep ‘24, along with Bengaluru and Chennai.