According to a report released by CBRE South Asia Pvt. Ltd. on Tuesday, Hyderabad attracted USD 2.24 billion of equity investments into the real estate sector between 2018 and 2022, accounting for 7% of the cumulative investments in India. The city recorded the closure of 24 land deals and the acquisition of 970 acres of land, with a total investment of USD 0.9 billion during this period. Additionally, Hyderabad witnessed the second-highest land acquisition activity in India, accounting for over 14% of the total land acquired since 2018.
The report also revealed that overall investments in the Indian real estate sector between 2018 and 2022 stood at USD 43.3 billion, with equity investments amounting to USD 31.8 billion and debt investments at USD 11.5 billion. The majority of the capital deployment was made through the core and core-plus investment strategies, while the opportunistic route for Greenfield developments also saw a growing number of bets being made.
The report further highlighted that cross-regional investors (outside the APAC region) invested nearly 47% of overall investments in India since 2018, while domestic investors, mainly real estate developers, invested over USD 13 billion, accounting for around 42% of the total investments during this period. Institutional investors have invested over USD 17 billion in the past five years, with North American investors continuing to make up most of these investments.
The office sector received over 56% of institutional inflows, while the acquisition of site/land parcels and the retail sector received over 15% and 11% of institutional investments, respectively. The report predicts that investment flows will remain steady over the next two years, with a cumulative inflow of USD 16-17 billion expected.
CBRE officials expressed that sustained demand across all sectors combined with stellar returns has led to an influx of new investors looking to set up large investment platforms in India. They also noted that the REIT landscape is expected to get more diverse in 2023 as India may soon see the listing of its first retail REIT, which could add more depth to the REIT market in the country.
Investments in site across top seven cities (2018-2022)City Land Acquired (acre) Land Deals Investment (in USD bn)
- Delhi-NCR 1760 67 3.8
- Mumbai 960 73 3.8
- Bangalore 700 44 1.1
- Hyderabad 970 24 0.9
- Chennai 500 47 0.9
- Pune 450 27 0.6
- Kolkata 110 4 0.1