According to CBRE, 67% of the $3 billion in real estate equity inflows in Q1 2025 came from Bengaluru, Mumbai, and Delhi-NCR
By Bricksnwall | 2025-04-13
From January to March 25, real estate equity
investments climbed by 74% to reach $3 billion; 67% of all equity inflows came
from Bengaluru, Mumbai, and Delhi-NCR.
The January–March 2025 quarter saw total
investments reach $3 billion, with Bengaluru, Mumbai, and Delhi-NCR accounting
for 67% of all equity inflows into real estate. According to CBRE research,
equity investments increased by 13% over the previous quarter and by over 74%
year over year, indicating a notable upswing.
Developer activity and the considerable interest shown by institutional investors and real estate investment trusts (REITs) throughout the quarter were the main drivers of investment inflows. According to the Market Monitor Q1 2025-Investments report, the total amount of equity investments made between January and March 2024 was $1.7 billion.
It stated that there was a noticeable level of
investor interest in development assets, especially in the office and
residential sectors.
From January to March 2025, Bengaluru led equity
real estate investments, with Delhi-NCR and Mumbai coming in second and third,
respectively. According to the report, the three cities collectively
contributed almost 67% of all capital inflows.
Between January and March of 2025, land/development sites and built-up office properties accounted for more than 74% of all capital inflows.. According to the research, investor interest in retail assets grew, accounting for 5% of capital inflows during the quarter and 13% of Q-o-Q growth due to higher REIT capital inflows.
Developers continued to be the key forces behind
capital deployment among investors, accounting for 46% of all equity inflows.
According to the report, REITs came in second with a 23% share, a notable rise
over the prior quarter and an indication of the growing institutional interest
in built-up asset classes.
"Despite global challenges, India's real
estate market continues to show resilience and draw consistent investor
interest," stated Anshuman Magazine, chairman and CEO of CBRE's India,
South-East Asia, Middle East, and Africa division. high fundamentals, high
demand across asset classes, and rising confidence among both domestic and
foreign investors are the reasons for the notable increase in capital inflows
from January to March 25. We anticipate that this positive trend will persist
throughout the year across both core and developing categories due to
structural changes in occupier preferences and changing market conditions.
"The first quarter of 2025 has set a strong precedent for the year with notable investor interest in development assets, particularly in residential and office segments," stated Gaurav Kumar, managing director of Capital Markets and Land, CBRE India. The increased involvement from institutional investors and REITs emphasizes the depth and maturity of the Indian real estate investment market. Supported by a robust pipeline of prospects and steady macroeconomic indicators, we expect further capital investment in built-up offices, warehousing, and alternative asset classes, including data centers and healthcare.
Prospects for 2025
Regarding the year's outlook, it stated that investment activity is expected to continue on its upward trajectory in 2025, driven mainly by capital inflows into built-up office and warehouse assets as well as strong pipelines for the purchase of residential, commercial, and mixed-use development sites.
According to the report, tier-I cities and metro areas would probably continue to be the key destinations for equity inflows. Depending on improvements in the global economy and the deployment of dry powder accumulated from a busy exit market in 2024, investment activity is anticipated to pick up speed in the second half of 2025.
Source: Hindustan Times
