India Market Monitor Q3 2024 – Investments

Capital inflows into India’s real estate market reached a new peak in 9M 2024, following a resurgence in investments in Q2 2024. Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, while institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows.

Due to a resurgence in investment inflows in built-up o­ice assets and a strong acquisition pipeline for land in the residential sector, we anticipate overall equity investments in 2024 to be in the range of USD 10-11 billion. Greenfield developments would continue witnessing robust momentum in the upcoming quarters, with a healthy spread across sectors such as residential, retail, data centres, industrial & logistics, hospitals, etc.

Furthermore, metros and tier-I cities are likely to continue being the primary recipients of equity inflows; however, in view of the Securities and Exchange Board of India’s small and medium real estate investment trust (SM REIT) regulations, quality (but smaller) assets in tier-II locations would also off­er a window of opportunity for investments.

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