Delhi-NCR Tops Real Estate Investment In India With $633.3 Million In H1 2024: Report

Delhi-NCR has attracted the highest private equity investment in India's real estate market, securing $633.3 million during the first half of 2024, according to a report by Cushman & Wakefield. The surge is attributed to the high demand for prime office spaces and luxury housing in the region.

The report reveals that of the total investment in Delhi-NCR, $483.6 million was funnelled into office assets, while $149.6 million went to the residential sector. The significant inflow in the office segment is driven by major equity buy-outs by leading fund houses, with continued interest in high-end and luxury residential projects.

Across six major cities in India, the real estate sector saw a total investment of $3.9 billion during the January–June period, with multi-city deals dominating the inflow at nearly $1.9 billion. Other cities that attracted significant investments include Bengaluru with $509.5 million, Hyderabad at $319.9 million, and Chennai with $234.7 million.

"The $3.9 billion of private equity inflows during the first half of 2024, already surpassing 70% of last year's total, underscores investor confidence in India's real estate market," said Somy Thomas, Managing Director of Valuation & Advisory and Capital Markets at Cushman & Wakefield. He highlighted the role of infrastructure-related sectors like logistics and industry, driven by substantial public investments in multi-modal economic corridors, as key drivers of this growth.

Amar Sarin, MD & CEO of TARC Ltd, emphasised the growing demand for luxury living in Delhi and Gurugram, citing the region's strategic location, robust infrastructure, and cosmopolitan culture as key factors. Meanwhile, Shiwang Suraj of InfraMantra pointed out the region's exceptional infrastructure and connectivity, making it an ideal destination for real estate investments.

Sanjoo Bhadana of 4S Developers echoed these sentiments, noting that Delhi-NCR's strategic location, booming economy, and population growth offer lucrative opportunities for investors.

As investor confidence continues to rise, experts anticipate a buoyant year ahead for private equity investments in the commercial real estate sector, potentially surpassing initial expectations.

(With inputs from PTI)