Real Estate

Mumbai Realty Saw Invested Worth $8 Bn Between 2018-22 : Report

Mumbai Realty Saw Invested Worth $8 bn Between 2018-22 : Report

 

Overall national investments in the industry between 2018 and 2022 were $43.3 billion.

According to a CBRE South Asia research titled The Investment Landscape of Indian Real Estate and Evolving Trends, Mumbai saw the greatest overall inflow of real estate investments in India between 2018 and 22 at $8 billion.  In India as a whole, real estate investments between 2018 and 2022 totaled $43.3 billion. Debt investments were $11.5 billion, compared to $31.8 billion in equity investments.

Mumbai had the largest site/land deal investments during this time, totaling $3.8 billion. During the five years, 73 land sales totaling around 960 acres were completed.

 

Delhi-NCR surpassed all other cities in terms of the percentage of cities with land purchases from 2018 to 2022, with a share of 26%. Hyderabad and Mumbai were next, each with 14% of the market. Mumbai contributed for a 29% part of the $11.5 billion in debt that real estate businesses raised between 2018 and 22 with $3.3 billion, the second-highest amount behind Bangalore.

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In terms of total real estate investments in 2022, Delhi-NCR, Mumbai, and Bangalore accounted for more over 67% of the total. Mumbai recorded a significant year-over-year rise in real estate investments of 27% in 2022, totaling $2 billion. For the 2018–22 period, Mumbai accounted for 25% of the $32 billion in total investment inflows, followed by Delhi–NCR with 21% and Bangalore with 16%. Together, these cities represented a share of more than 63%, or $20 billion in equity capital.

According to the research, institutional inflows will continue to be disproportionately concentrated in the office sector, followed by the industrial and logistics sector and the site/land parcel sector. While metros and Tier-I cities would continue to be the primary receivers of equity inflows throughout this time, Tier-II cities may experience growing levels of investments as a result of increased development activity supported by strong demand, particularly in the retail and I&L sectors.

Additionally, Q12023 statistics revealed that the office sector (with a share of approximately 26%) and development sites/land purchases (with a share of about 49%) dominated investment flows. With a nearly 73% share of the total inflows in Q12023, domestic investors (mainly developers) took the lead. Institutional investors took the remaining portion. In terms of regional distribution, Mumbai (14%) and Delhi-NCR (15%) accounted for the majority of investment inflows in Q1 2023.

"Over the next two years, we expect investment flows to remain steady with cumulative inflow of $ 16-17 billion," said Anshuman Magazine, chairman and CEO-India, South-East Asia, Middle East & Africa, of CBRE. We predict that the office sector will continue to draw the highest proportion of institutional inflows, followed by I&L and sites/land parcels, based on historical and present patterns as well as the money that existing investment platforms have raised over the previous two to three years. Furthermore, we think that alternative investments, particularly in data centres, may continue to grow.

 

Source From:- navimumbaihouses