Mumbai's $6.9B Surge: Real Estate’s New Capital Takes the Lead

Mumbai Emerges as India's Real Estate Powerhouse

In a significant shift in India's real estate landscape, Mumbai has taken center stage, becoming the top destination for equity investments, pulling in a staggering $6.9 billion between 2022 and 2024. This accounts for 26% of the total investments made across the country’s six major metropolitan regions.

According to a comprehensive study by CII-CBRE, total real estate equity investments in India surged to $26.6 billion during this period. The trio of Mumbai, Delhi-NCR, and Bengaluru alone accounted for $16.5 billion, securing 62% of all real estate capital inflows.

Why Gateway Cities Dominate Investment Trends

The dominance of these gateway cities is no accident. Their success stems from a blend of factors:

• Access to high-quality projects
• Advanced infrastructure
• A large pool of skilled talent
• Sustained demand across segments
• A maturing, organized real estate sector

These elements create an environment ripe for investment and innovation.

Land, Office, and Growth Beyond Metros

Within Tier-I cities, development sites and land assets led the charge, capturing 44% of total equity investments. The office sector followed closely with a 32% share.

Meanwhile, Tier-II cities aren’t being left behind. These rising stars attracted $3 billion, or 10% of total equity capital. Most of this funding went into site developments (47%), while industrial and logistics sectors pulled in a notable 25%, supported by growing consumption and industrial development.

Explore India's Tier-II real estate markets

Who’s Investing – And How

The market is witnessing a diversification of investment strategies:

• Institutional investors made up 33% of the capital.
• Developers took the lead with 46%, often entering into joint ventures or development agreements to capitalize on emerging opportunities.

With core assets limited, investors are getting creative—opting for opportunistic investments and more flexible strategies.

Learn about joint venture real estate investments

What Lies Ahead: 2025 and Beyond

Looking ahead to 2025, optimism continues to shine:

• The office sector is expected to see stable investments, especially from domestic funds.
• Foreign institutional capital saw a 4x rise in 2024, despite global caution, a sign of renewed confidence in India’s real estate sector.
• The logistics and warehousing industries remain strong, buoyed by industrial integration and potential IPOs.
• Retail real estate is catching investor attention, especially from niche players.

Read more about India's logistics real estate

A More Transparent, Sustainable Future

As noted by Anshuman Magazine, Chairman & CEO of CBRE India, the sector is evolving fast: “India's real estate sector is rapidly institutionalising, aligning with global investor expectations.”

Enhanced transparency, strict due diligence, and an emphasis on sustainability are shaping a risk-mitigated, globally competitive environment. Notably, 1 in 5 investors now prioritizes green buildings and ESG principles, reflecting a mature and responsible market outlook.