* Investment quantum increased by 27% to reach USD 6.06 billion in 2019, compared to USD 4.76 billion in 2018
*Office and land deals dominated investment activities with each witnessing around 40% of total transactions·
*Majority of capital inflow were from foreign players with about 65% share
*Key sectors that attracted investments in 2019 – Office (39%), Development sites/land (39%), Hotels (11%)
*The key gateway cities of Hyderabad, Mumbai, National Capital Region & Bangalore led investments
Hyderabad 28th April 2020: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today released comprehensive findings of investment trends in the domestic industry and offered a vertical-wise break-up of the fund inflow in the sector. The findings by CBRE stated that the real estate industry in the year 2019 recorded a 27% increase in investment with approximate fund inflow of USD 6 billion across all key categories.
The findings further stated that the investment activities were dominated by ‘Office Sector’ and ‘Development Sites/Land’, with each commanding around 40% inflow of funds. This was followed by 11% investment in hotels. The investment in ‘Development Sites/Lands’ in 2019 saw a 5% increase as compared to 2018. The Hotels Segment saw a 10% increase in the total investment against that of 2018.
Mr. Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE, said, “The healthy investment activity in the real estate sector is a testimony of its performance and resilience. With the industry becoming more organized, transparent, and profitable, it will continue to attract investments from global as well as domestic players. The steps initiated by the government to increase liquidity in the market has also worked well in increasing the confidence of investors.”
Mr. Gaurav Kumar & Mr. Nikhil Bhatia, MD & Co-Heads, Capital Markets, India, CBRE South Asia Pvt. Ltd. further added, “India has emerged as a strong regional hub for institutional investors looking for opportunities in office, retail, warehousing and hospitality. This is underlined by significant foreign capital being deployed at land stage. We expect India to be better placed in the region on a relative basis due to the robust handling of the COVID-19 situation by the government.”
Giving a comparison of the investment received, the findings also mentioned that the sector received a total investment of USD 4.8 billion in 2018. City-wise the investment activities were led by Mumbai, Hyderabad, National Capital Region (NCR) and Bangalore.
The investment activity in all the key segments was led mostly by foreign players who contributed to the tune of 65%. The total investment made by the domestic players in various real estate projects accounted to 35 %.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide.
CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. CBRE was the first International Property Consultancy to set up an office in India in 1994. Since then, the operations have grown to include more than 8,500 professionals across 10 offices with a presence in over 80 cities in India. As a leading international property consultancy, CBRE provides clients with a wide range of real estate solutions, including Strategic Consulting, Valuations/Appraisals, Capital Markets, Agency Services, Asset Services and Project Management.
The guiding principle at CBRE is to provide strategic solutions that make real estate holdings more productive and economically efficient for its clients across all service lines.