According to a report by CBRE South Asia Pvt. Ltd., Hyderabad has attracted approximately $2.24 billion in equity investments in the real estate sector from 2018 to 2022, accounting for 7% of the total investments in India. The city has also recorded the second-highest land acquisition activity in India, with investments totaling $0.9 billion in land/site acquisition. Institutional Investors Leading Inflows in India
The report further highlights that institutional investors have invested over $17 billion in the past five years, with North American investors making up most of these investments. The office sector has received over 56% of institutional inflows, with retail and land parcels being the other top preferred sectors.
Steady Investment Inflows Expected
CBRE expects investment flows to remain steady over the next two years, with the office sector continuing to attract the largest share of institutional inflows, followed by sites/land parcels and I&L. Additionally, the report suggests that alternative investments, specifically in data centers, could gain further traction.
India Becoming Attractive Investment Destination
The Managing Directors of CBRE India point out that due to strong demand across all sectors and impressive returns, there has been a significant increase in new investors looking to establish large investment platforms in India. As a result, India has become one of the most appealing investment destinations in the APAC region.
The report also reveals that cross-regional investors from outside the APAC region have invested almost 47% of the overall investments in India since 2018, while domestic investors, mainly real estate developers, have invested over $13 billion, accounting for around 42% of the total investments during this period. The remaining fraction of investment flows in India was eventually accounted for by intra-region movements within the APAC.
Furthermore, the report predicts that investments will remain steady over the next two years, with cumulative inflows of $16-17 billion. The office sector is expected to attract the largest share of institutional inflows, followed by sites/land parcels and I&L, and alternative investments in data centers may also gain further traction.
Real estate investments in Hyderabad have been steadily rising, with the city attracting a significant share of the total investments in India from 2018 to 2022. The report by CBRE South Asia Pvt. Ltd. highlights the city’s impressive land acquisition activity and equity investments in the real estate sector. Additionally, the report notes that institutional investors have been the main drivers of investments in India, with North American investors accounting for most of the investments.
the real estate sector in Hyderabad and India, in general, presents attractive investment opportunities for institutional and domestic investors alike. With steady investment inflows expected over the next two years, the sector is poised for continued growth and development.