Between 2018 and 2022, Hyderabad expects to attract equity investment of US$ 2.24 billion in real estate, which is 7% of the cumulative Investment in India.
As many as 24 land deals were closed and 970 acres acquired in Hyderabad on Tuesday, which saw a total investment of $900 million, according to findings of ‘Indian Real Estate: Betting on a Capital’ Future’ published by CBRE South Asia Pvt Ltd. Inland/site acquisition during 2018-22.
The city also recorded the second-highest land acquisition activity in the country, accounting for over 14 percent of the total land acquired since 2018. As per the report, across India, the total Investment in the land sector ER between 2018 and 2022 was $43,300 million. Equity investment during this period stood at US$31.8 billion, while debt investment stood at US$11.5 billion.
The CBRE report said that since 2018, most of the capital deployment has been through the core and core-plus investment strategies. However, the city has seen an increasing number of bets made through opportunistic routes for greenfield development.
Institutional Investors Entering India ( IIEI):
As per the report, intra-regional investors (outside the APAC region) have contributed around 47% of the total investments in India since 2018. Domestic investors (mainly property developers) have invested over USD 13 billion, representing about 42% of investments. , Total Investment during this period.
Institutional investors have invested more than $17 billion over the past five years, and North American investors account for the largest portion of these investments.
Sector Bets ( SB):
The office sector received more than 56 percent of institutional inflows and pent-up demand, and improving employee occupancy levels in business parks fueled a strong rebound in office leasing.
Land/parcel acquisitions were another favorite bet, with total institutional inflows exceeding $2.5 billion, representing a share of nearly 15 percent.
Among cities in India, Hyderabad ranks among the top five for real estate investment. Worth noting that over $2 billion of capital inflows into the retail sector took place, which is over 11% of total institutional Investment. This indicates the growing importance of retail in the real estate sector and the potential of Hyderabad as a retail hub.
CBRE President and CEO for India, South East Asia, Middle East and Africa told Anshuman Patrika: “Over the next two years, we expect investment flows to remain stable with cumulative inflows of $16-17 billion.”
Gaurav Kumar and Nikhil Bhatia, managing directors of capital markets and residential business at CBRE India, attributed this growth to sustained demand across sectors and the spectacular returns witnessed by investors.
Rami Kaushal, Managing Director, Valuation and Advisory Services, India, Middle East and Africa, CBRE, said: “The REIT landscape will expecting to become more diverse this year, as we may soon see the listing of the first Indian retail REIT, which REITs in India can add more depth to the market.”
Investment in sites in the top 7 cities (2018-2022)
Urban land acquired (acres) Investment in land deals (US$ billion)
- Delhi-NCR 1760 67 3.8
- Mumbai 960 73 3.8
- Bangalore 700 44 1.1
- Hyderabad 970 24 0.9
- Madras 500 47 0.9
- Puno 450 27 0.6
- Calcutta 110 4 0.1
According to CBRE India, this has led to an influx of new investors seeking to set up large investment platforms in the country. This is a clear indication of the positive impact of the Hyderabad property market on the overall economy of India.
With the increasing demand for residential and commercial properties, Hyderabad has emerged as one of the top five cities in India for real estate investment. This trend will expect to continue as the city continues to attract investors from around the world who see the potential for high returns on their investments.
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