Mumbai leads in real estate investments, followed by Delhi-NCR & Bangalore: CBRE and CII

Mumbai has emerged as the frontrunner in real estate investment, attracting USD 6.9 billion with a 26 per cent share of total investments, a joint report by CBRE South Asia and the Confederation of Indian Industry (CII) revealed.

From 2022 to 2024 witnessed record-breaking capital inflow into Indian real estate, with Mumbai, Delhi-NCR, and Bengaluru collectively receiving USD 16.5 billion, accounting for 62 per cent of the total investments in the period.

The report has also highlighted sustained capital flow into the real estate sector. Among all asset classes, land and development sites saw the highest investor interest, drawing in 44 per cent of the total investments.

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According to CBRE, built-up office spaces also remained attractive and received a 32 per cent share of the capital during the aforesaid period.

While in terms of equity investments in the real estate sector between 2022 and 2024 stand at USD 26.7 billion. Moreover, Tier-2 cities also saw notable activity, with investments nearing USD 3 billion, contributing around 10 per cent to the overall share.

According to Anshuman Magazine of CBRE, the domestic real estate sector is entering a new phase of growth, powered by robust capital inflows and a significant pool of dry powder ready for deployment. The investor sentiment is underpinned by sound fundamentals and steady end-user demand. "We believe this momentum will sustain as India’s structural reforms and corporate evolution continue to attract long-term capital," Magazine said.

Rishi Kumar Bagla of CII said, "India’s real estate sector is rapidly institutionalizing risk-mitigated environment that aligns with global investor expectations and enhanced due diligence frameworks, sustainable development mandates, and stronger compliance protocols are becoming the norm," adding that with 1 in 5 investors prioritising green buildings, ESG-led investment strategies are no longer optional—they are central to long-term value creation. As the sector becomes more structured and regulated, we expect deeper participation from global funds, especially those focused on sustainability and resilience.

Rami Kaushal, Managing Director, Consulting & Valuation Services, India, Middle East, Africa, CBRE, said,

The next wave of real estate investment in the country will be defined by the growth of alternate sectors—data centres, healthcare, hotels, education, student housing, and co-living spaces, stated Rami Kaushal of CBRE, adding, "These segments are benefiting from digital acceleration, changing urban lifestyles, and favourable government policies. With land acquisition and platform-level investments already gaining traction, we anticipate increased investor interest in these future-ready asset classes. The market is clearly maturing beyond traditional sectors, offering diversified, innovation-led opportunities for both domestic and international capital."

The report also outlined that the real estate sector continues to witness a stable and strong capital inflow, with land parcels and office properties emerging as the most sought-after assets among investors.