Singapore, US, and Canada Lead Surge in Foreign Investments in Real Estate

Posted On January 11, 2025

11 January 2025

India’s real estate sector witnessed a record surge in foreign investments in 2024, reaching an all-time high of USD 11.4 billion, marking a 54% year-on-year growth, according to CBRE’s ‘Market Monitor Q4 2024 – Investments’ report.

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Singapore, the United States, and Canada emerged as the top foreign investors, contributing over 25% of the total equity inflows. Singapore led with a 36% share, followed by the US at 29%, and Canada at 22%. Investments from the UAE also saw significant growth compared to the previous year.

Despite the rise in foreign capital, domestic investments remained dominant, accounting for 70% of the total equity investments. Developers led the investment inflows, securing 44% of the total equity, followed by institutional investors at 36%, corporations at 11%, and Real Estate Investment Trusts (REITs) at 4%.

The surge in investments was driven by increased capital deployment in built-up office assets and a steady demand for land and development sites, which accounted for 39% of the total equity inflows. Office spaces attracted 32%, while retail, residential, and industrial/logistics sectors garnered 9%, 8%, and 6%, respectively.

Experts predict sustained growth in 2025, with continued interest in residential development sites and office assets. The booming e-commerce and quick-commerce sectors are expected to drive further growth in logistics and warehousing infrastructure.

Tier-I cities like Mumbai and Delhi-NCR remained the top destinations, each drawing 25% of the total equity inflows. Bengaluru followed with 14%, while Chennai and Hyderabad accounted for 8% and 6%, respectively. Tier-II cities are also attracting attention due to the ever-increasing demand in residential, retail, and industrial segments.

The Indian real estate sector is positioned for continued growth, backed by strong investor confidence, favorable policies, and expanding infrastructure.