New Delhi, Jan 24 : Mumbai and New Delhi have emerged as two of the most sought-after destinations for cross-border real estate investment in the Asia Pacific region, according to a report by global property consultancy CBRE. The report ranked Mumbai at the fifth position, trailing behind Tokyo, Sydney, Singapore, and Ho Chi Minh City, while New Delhi secured a shared eighth position alongside Seoul, Osaka, and Hanoi.
The report highlights India’s growing appeal in the global real estate market, with net buying intentions in the country reaching 3% in 2024. Key players driving these investments include developers, owners, operators, real estate funds, and institutional investors, underscoring the diverse and dynamic nature of the market.
Surge in Foreign Equity Investments
India recorded a historic high in foreign equity investments in real estate in 2024, with total inflows reaching $11.4 billion—a 54% year-on-year growth. Countries like Singapore, the United States, and Canada were the largest contributors, collectively accounting for over 25% of the total investments. Singapore led the pack with a 36% share, followed by the United States (29%) and Canada (22%).
Investments from the UAE also saw significant growth compared to 2023, reflecting increasing global confidence in India’s real estate sector.
“Investment in India’s real estate market reached unprecedented levels in 2024, driven by both domestic and foreign equity investors. This momentum highlights India’s growing stature as a global real estate destination,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East, and Africa, CBRE.
He further noted, “Overseas investors have shown renewed interest across various asset classes, and we anticipate this trend to continue, bringing consistent capital inflows into both established and emerging real estate sectors.”
Diverse Asset Classes Drive Investment
Investor sentiment remains robust across a variety of asset classes, including office spaces, residential projects, industrial developments, and data centres. These sectors continue to draw strong interest from both domestic and international investors.
Notably, investors in Mumbai and Delhi are gravitating towards value-added and opportunistic strategies, which offer higher risk-reward potential. While some are exploring core office spaces in tier-1 cities, others are focusing on development opportunities, such as acquiring land for residential projects (build-to-sell) or establishing data centres.
Emphasis on Sustainability
The report also underscores the growing focus on Environmental, Social, and Governance (ESG) initiatives among real estate investors. Nearly 56% of investors expressed an interest in acquiring or developing green buildings, while 46% indicated plans to retrofit existing assets to meet sustainability standards. This focus on ESG reflects a broader shift in the industry towards sustainable and responsible investing.
Positive Outlook for the Future
The CBRE report and the inputs received by IANS paints an optimistic picture of India’s real estate sector, with strong foreign and domestic investments expected to continue driving growth. The dual momentum across value-add and opportunistic strategies, coupled with a growing emphasis on sustainability, positions India as a key player in the global real estate market.
As Mumbai and New Delhi maintain their status as top investment destinations, India’s real estate sector is poised for sustained growth and innovation in the coming years.