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 |
Housing News Desk is the news desk of leading online real estate portal, Housing.com. Housing News Desk focuses on a variety of topics such as real estate laws, taxes, current news, property trends, home loans, rentals, décor, green homes, home improvement, etc. The main objective of the news desk, is to cover the real estate sector from the perspective of providing information that is useful to the end-user.
Facebook: https://www.facebook.com/housing.com/
Twitter: https://twitter.com/Housing
Email: [email protected]
Related Posts
Property: The 1st choice among 7th Pay Commission beneficiaries.
Office space absorption up by 46% at over 10.2 million sq ft: CBRE.
9.6 million sq ft Grade A office space absorbed in Q3: Colliers report.
Job losses in IT industry to impact residential real estate: JLL.
How will Coronavirus impact the real estate market.
How to make your work from home more productive during times of Coronavirus.
