Real estate in the top six Indian cities received $26.6 billion of equity inflow between 2022 and 2024 (two calendar years), as per a joint report by the Confederation of Indian Industry (CII) and CBRE.
Mumbai topped the real estate equity investment with the highest inflow of $6.9 billion, accounting for a 26 per cent share in total real estate equity investments between 2022-24.
Equity investments in the real estate sector involve providing capital to acquire, develop, or operate real estate assets in exchange for a share of ownership and the potential profits generated by those assets.
Mumbai, Delhi-NCR, and Bengaluru attracted around $16.5 billion, accounting for a cumulative 62 per cent share during 2022-24. Development sites, land, and office sectors emerged as prime asset classes in Tier-I cities.
This sustained dominance of gateway cities was driven by a high concentration of investment-grade projects, robust urban infrastructure, a skilled talent pool, strong demand across asset classes, and a steadily formalising real estate ecosystem, the report said.
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Between 2022 and 2024, Tier-II cities accounted for nearly 10 per cent of total real estate equity investments, amounting to approximately $3 billion. During this period, site developments emerged as the leading investment sector in Tier-II cities, attracting approximately 47 per cent of the total Tier-II capital inflows, followed by the industrial and logistics (I&L) sector, which accounted for around 25 per cent of the share.
As per the report, institutional investors drove a 33 per cent share of real estate investments between 2022-24, while developers accounted for approximately 46 per cent.
Equity 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; real estate investment trusts (REITs); and others.
Rishi Kumar Bagla, chairman, CII Western Region, and chairman and managing director, BG Electricals and Electronics, said: “India’s real estate sector is rapidly institutionalising, creating a more transparent, risk-mitigated environment that aligns with global investor expectations. Enhanced due diligence frameworks, sustainable development mandates, and stronger compliance protocols are becoming the norm.”
With limited core market opportunities, investors are increasingly turning to opportunistic strategies, including joint ventures and development agreements, to build core assets.
Despite global caution, India saw a fourfold year-on-year (Y-o-Y) jump in foreign institutional office investments in 2024.
Anshuman Magazine, chairman and chief executive officer – India, South-East Asia, Middle East and Africa, CBRE, said: “India’s real estate sector is entering a new phase of growth, powered by robust capital inflows and a significant pool of dry powder ready for deployment. The strong investor sentiment, especially in residential and office assets, is underpinned by sound fundamentals and steady end-user demand.”

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