Capital deployment in India's realty surges 88% to record USD 30.7 billion: CBRE Report

Mumbai, (Maharashtra) [India] May 5 (ANI): Former HDFC Chairman Deepak Parekh released a CBRE South Asia report at the CII BFSI Summit 2026, which highlighted a surge in capital deployment in India's real estate sector, with equity inflows touching a record USD 30.7 billion between 2024 and the first quarter of 2026.

The report titled "Deploying Capital in a Transformative Era: The Four-Quadrant Analysis" highlighted that inflows rose 88 per cent compared to USD 16.3 billion recorded in 2022-2023. It noted that land and office assets accounted for more than three-fourths of total capital deployment during the period.

According to the report, around 6,025 acres of land were acquired for greenfield developments between 2024 and Q1 2026, with capital deployment of approximately USD 13 billion. Over 80 per cent of these investments were directed towards residential, mixed-use and office projects.

The report stated, "institutional investors, accounting Rs 30% of the total investments, recorded a more than two-fold increase in capital flows as compared to the 2022-2023 period, largely driven by an uptick in deployment towards core segments such as built-up office, retail, and logistics assets."

The report also underlined the growing role of Real Estate Investment Trust (REITs), which deployed a record USD 2 billion in Q1 2026, marking a sharp quarter-on-quarter and year-on-year increase. Total REIT deployment since 2024 stood at USD 3.8 billion, up 66 per cent over 2022-23 levels.

Speaking on the findings, Anshuman Magazine, Chairman and CEO -- India, South-East Asia, Middle East & Africa, CBRE, said structural reforms have significantly strengthened the sector's credibility.

"We are witnessing the payoff of a decade of structural reforms. From RERA and GST to the RBI's Project Finance Directions in 2025, each intervention has made India's real estate market more transparent, more resilient, and more institutionally credible," he said.

He added that the renewed engagement of financial institutions reflects a deeper shift in market dynamics.

"India's BFSI sector has not just returned to real estate but has redefined its relationship with the sector," Magazine said.

The report also underscored the growing role of debt markets, with bank credit to commercial real estate rising 16 per cent year-on-year between March 2025 and February 2026. Non-banking financial companies (NBFCs) also crossed the Rs 1 lakh crore mark in advances to the sector in September 2025, a five-year high.

REIT activity has emerged as a key driver, with capital deployment touching a record USD 2 billion in Q1 2026 alone--nearly four times higher quarter-on-quarter and six times higher year-on-year. Total REIT investments since 2024 stand at USD 3.8 billion, up 66 per cent from the previous two-year period.

CII Western Region Chairman Vir S Advani said the real estate and BFSI sectors together form a critical pillar of India's economic growth.

"India's real estate sector has evolved into a key avenue for institutional capital, driven by strong investor confidence, reforms, and the growing role of REITs," he said.

He further noted that stronger alignment between industry and financial institutions will be crucial to sustaining growth.

"With the sector contributing 7-8 per cent to GDP and projected to reach around 13 per cent by 2030, stronger linkages will unlock investment and support sustainable development," Advani added.

The report also pointed to rising investor appetite, with over 74 per cent of respondents in CBRE's 2026 Asia Pacific Investor Intentions Survey indicating plans to increase allocations to Indian real estate, citing robust demand and expanding opportunities across core and emerging asset classes. (ANI)

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