Domestic capital drives India’s real estate boom as inflows jump 72% to $5.1 billion in Q1
Mumbai: India's real estate sector drew $5.1 billion of institutional capital in the March quarter, emerging as a key beneficiary of domestic liquidity and improving confidence in yield-generating assets, even as global macroeconomic uncertainties persist.
Institutional financing of property in the January-March quarter surged 72% on-year, showed data from CBRE South Asia. The quarter also saw a 53% sequential growth from $3.3 billion in the previous quarter, reflecting sustained momentum in capital deployment.
The surge in investments was largely driven by domestic investors, who accounted for about 96% of total inflows. Developers led capital deployment with a 42% share, followed closely by Real Estate Investment Trusts (REITs) at around 40%.
REIT investments crossed $2 billion during the quarter. "This underscores the high confidence of domestic investors and institutional players in the Indian real estate growth story," said Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE. "Despite global macroeconomic headwinds, our resilient economic framework continues to attract deep capital. " Going forward, he expects foreign capital to re-engage strongly, driven by clearer deployment strategies.
"The composition of capital flows is evolving, with domestic investors stepping in earlier across land and income-yielding assets. For developers, this improves execution visibility and reduces dependence on traditional funding cycles. What we are seeing is a predictable, partnership-driven investment environment that supports disciplined expansion and faster project turnaround," said Mayur R Shah, VC, Marathon Nextgen Realty.
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