Mumbai received total real estate investment inflow of $8 billion during 2018-22, the highest in India, shows CBRE South Asia report, titled The Investment Landscape of Indian Real Estate and Evolving Trends. Overall investments in the realty sector between 2018-2022 pan-India stood at $43.3 billion. Equity investments stood at $31.8 billion while debt investments were $11.5 billion.
Mumbai also recorded the highest investments in site/land deals during this period at $3.8 billion. Around 960 acres were acquired with 73 land deals during the 5-year period.
With respect to city split by land acquisitions area during 2018-2022, Delhi-NCR led all cities and had a share of 26%. Mumbai and Hyderabad followed with 14% share each. In terms of debt-raising activity by realty companies, of the total $11.5 billion debt raised during 2018-22, Mumbai accounted for a 29% share with $3.3 billion, the second highest after Bangalore.
In 2022, Delhi-NCR, Mumbai and Bangalore accounted for a share of over 67% in cumulative real estate investments. Mumbai reported a strong Y-o-Y increase in realty investments of 27% in 2022 with an investment of $2 billion. During 2018-22 period, Mumbai had 25%, followed by Delhi-NCR with 21% and Bangalore with 16%, dominated cumulative investment inflows of $32 billion. Together, these cities accounted for a share of over 63%, which translates into $20 billion equity capital.
The report stated that the office sector would continue to receive a majority share of institutional inflows, followed by the industrial & logistics sector and the site/land parcel sector. While metros and Tier-I cities would continue to be the major recipients of the equity inflows during this period, Tier-II cities could see rising level of investments owing to increased development activity backed by a healthy demand, mainly in the retail and I&L sectors.
Also Q12023 data showed that development sites/land acquisitions dominated investment flows with a share of about 49%, followed by the office sector (26%). Domestic investors (primarily developers) led the inflows in Q12023 with an almost 73% share; institutional investors garnered the remaining share. In terms of the geographical spread, Delhi-NCR (15%) followed by Mumbai (14%) dominated investment inflows during Q1 2023.
Anshuman Magazine, chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE, said, “Over the next two years, we expect investment flows to remain steady with cumulative inflow of $ 16-17 billion. Taking into account historical and current trends and the capital that existing investment platforms have raised over the past 2-3 years, we anticipate that the office sector will continue to attract the largest share of institutional inflows, followed by I&L and sites/ land parcels. Moreover, we believe that alternative investments, specifically in data centres, could gain further traction.”
Investments in site across top seven cities from 2018-2022
| City | Land Acquired | Land Deals | Investment
(in $ bn) |
| Delhi-NCR | 1760 acre | 67 | 3.8 |
| Mumbai | 960 acre | 73 | 3.8 |
| Bangalore | 700 acre | 44 | 1.1 |
| Hyderabad | 970 acre | 24 | 0.9 |
| Chennai | 500 acre | 47 | 0.9 |
| Pune | 450 acre | 27 | 0.6 |
| Kolkata | 110 acre | 4 | 0.1 |
