Mumbai and Delhi Rank High for FDI in Real Estate: CBRE Insights
Click to start listening
Synopsis
Mumbai and New Delhi are among the top 10 cities in the Asia Pacific for cross-border real estate investment, according to a recent CBRE report. The findings highlight significant foreign equity inflows and a strong focus on ESG initiatives in India's real estate market.
Key Takeaways
- Mumbai ranks fifth in Asia Pacific for FDI.
- New Delhi shares the eighth spot with Seoul, Osaka, and Hanoi.
- Foreign equity investment in Indian real estate reached $11.4 billion in 2024.
- ESG initiatives are a key focus for investors.
- Singapore, the US, and Canada dominate foreign investments.
New Delhi, Jan 24 (NationPress) Mumbai and New Delhi have been identified as two of the top 10 most sought-after markets for international real estate investments in the Asia Pacific region, as indicated by a recent report released on Friday.
Mumbai secured the fifth position, behind Tokyo, Sydney, Singapore, and Ho Chi Minh City, while New Delhi shared the eighth position with Seoul, Osaka, and Hanoi, according to the findings from property consulting firm CBRE.
In India, the overall net buying intentions have reached 3 percent, with developers, owners, operators, real estate funds, and institutional investors exhibiting the most robust buying intentions.
The report highlights that investor sentiment in India is influenced by various asset classes, including office, residential, industrial, and data centres.
India has experienced significant foreign equity investment inflows in the calendar year 2024, with Singapore, the United States, and Canada leading in foreign equity investments. Together, these three nations contributed more than 25 percent of the total equity investments in the country’s real estate sector in 2024, according to the report.
Singapore accounted for nearly 36 percent of the total foreign equity investments, followed closely by the United States (29 percent) and Canada (22 percent).
Investment from the UAE also saw a notable increase throughout 2024 compared to 2023. The total equity investment in Indian real estate hit an unprecedented $11.4 billion in 2024, marking a 54 percent year-on-year growth, as reported.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East and Africa at CBRE, stated, "Investment in India's real estate sector reached an all-time high in CY2024. While domestic investors played a dominant role, the resurgence of foreign equity investments and capital deployment across various asset classes highlight India’s increasing status as a global real estate hub.
"This trend is expected to persist with a steady influx of capital into both established and emerging sectors of the real estate market," he added.
Investors focusing on Delhi and Mumbai are more inclined to pursue value-added and opportunistic strategies, which generally involve a higher risk/return profile compared to core and core-plus strategies.
Those targeting value-add strategies in India are likely to investigate core office products in tier-1 cities like Mumbai and Delhi, while those interested in development opportunities may consider acquiring land for either residential (build-to-sell) projects or data centre developments, as the report mentions.
The survey also indicates that Environmental, Social and Governance (ESG) initiatives remain a primary focus for investors exploring new investment opportunities in India, with 56 percent showing interest in acquiring or developing green buildings, and 46 percent looking to retrofit existing assets.
