Mumbai Tops Real Estate Equity Investment in India with $6.9 Billion Inflow: 2022

Mumbai Tops Real Estate Equity Investment in India with $6.9 Billion Inflow: 2022–24 Report

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Mumbai Tops Real Estate Equity Investment in India with $6.9 Billion Inflow (2022–24)

India’s real estate sector has taken a definitive leap forward in its journey toward institutionalisation, and Mumbai has emerged as the country’s top destination for equity investment, according to a joint report by CII and CBRE. With an impressive inflow of $6.9 billion, Mumbai accounted for 26% of the total $26.6 billion real estate equity investments across six major Indian cities between 2022 and 2024.

India's Equity Investment Landscape (2022–24)

The total real estate equity investment of $26.6 billion was spread primarily across Mumbai, Delhi-NCR, and Bengaluru, which together accounted for $16.5 billion, or 62% of all investments during this period. These gateway cities benefited from:

- Strong infrastructure development

- Organised real estate sectors

- A concentration of Grade A projects

- High-quality skilled workforce

- Consistent demand across residential, office, and industrial segments

Mumbai’s Dominance: Why Investors Are Betting Big

Mumbai continues to attract massive institutional and developer attention due to its:

- Robust urban infrastructure

- Ongoing mega-projects (e.g. Metro lines, Coastal Road, MTHL)

- High-value residential and commercial zones

- Demand resilience across market cycles

With the city now embracing green building norms and increased transparency, the region has become an attractive proposition for domestic and global investors alike.

Sector-Wise Investment Breakup

The CII-CBRE report also highlights which asset classes are receiving maximum interest from investors across both Tier-1 and Tier-2 cities.

Tier-1 Cities (Including Mumbai)

- 44% of equity investments went into land and development sites

- 32% were directed toward office assets

- Remaining inflows supported residential, logistics, and retail segments

Tier-2 Cities

Tier-2 cities attracted $3 billion, or 10% of overall equity investment during the same period. These inflows were largely due to:

- Increased industrial and warehousing development

- Expansion of consumption-driven demand

- Connectivity enhancements and urban infrastructure projects

In Tier-2 cities:

- 47% of the investments were directed towards site development

- 25% went into logistics and industrial spaces

What’s Fueling Institutional Confidence?

The report notes that institutional investors contributed 33% of overall real estate investments, while developers accounted for 46%. Institutional capital leaned toward:

- Completed office assets

- Residential land parcels

- ESG-compliant developments

The report also highlights an increased appetite for joint ventures and development agreements, as traditional core opportunities narrow. Investors are now seeking value-add strategies, with growing interest in brownfield and redevelopment projects.

Land and Residential Projects Dominate Capital Flows

One of the most interesting takeaways is that residential projects accounted for 61% of all land-related investments from 2022–24. As demand for urban housing rises and regulatory frameworks mature, land continues to be a top-performing asset class—especially in markets like Mumbai, Pune, Bengaluru, and NCR.

According to Anshuman Magazine, Chairman & CEO, CBRE India, SouthEast Asia, Middle East & Africa:

> “The strong investor sentiment, especially in residential and office assets, is underpinned by sound fundamentals and steady end-user demand.”

Office & Commercial Segment Outlook for 2025

The office sector remains resilient, with projections indicating stable inflows in 2025. Despite global economic caution, foreign institutional investments in Indian office assets quadrupled in 2024, a sign of renewed long-term confidence.

Domestic funds are expected to continue active participation, particularly in:

- Flexible office spaces

- Business parks

- Tech-enabled workplaces

This aligns with a larger trend of hybrid working models and tenant demand for ESG-compliant, energy-efficient buildings.

Industrial, Warehousing & Retail: Sectoral Highlights

- Logistics and warehousing continue to gain momentum, bolstered by industrial corridors and emerging IPO opportunities in logistics REITs.

- The retail sector is showing signs of a rebound, especially among specialised investors eyeing high-street assets and Grade A malls in metros and Tier-1 cities.

ESG and Transparency Are Driving the Future

The report confirms that India’s real estate sector is rapidly institutionalising, with a growing emphasis on:

- ESG-led investment strategies

- Green buildings and sustainability mandates

- Improved compliance frameworks

- Due diligence and transparent transactions

According to Rishi Kumar Bagla, Chairman, CII Western Region:

> “With 1 in 5 investors prioritising green buildings, ESG-led strategies are no longer optional—they are central to long-term value creation.”

This aligns Indian real estate with global investor expectations, particularly as foreign funds seek lower-risk, regulated markets with credible exit opportunities.

📍 Key Takeaways for Investors in 2025

- Mumbai remains the top investment magnet due to its infrastructure growth, premium asset base, and regulatory maturity.

- Land and residential projects continue to dominate equity inflow due to high absorption and flexible exit strategies.

- Tier-2 cities are rising stars, offering value-add opportunities in industrial and logistics segments.

- Institutional participation is growing, with a stronger focus on ESG, compliance, and co-investment models.

- The office and retail sectors are poised for stability and resurgence in 2025, especially with global capital flows returning.

Final Thoughts: Real Estate Investment Outlook in India

India’s real estate sector is entering a mature, transparent, and performance-driven phase. With increasing institutionalisation and data-led decision-making, investors now operate in a more risk-mitigated environment.

As per CBRE and CII, 2025 promises to be a year of clarity, capital rotation, and core-plus strategies. For investors looking to bet on India’s urban growth story, Mumbai leads the way—backed by demand resilience, global capital interest, and policy evolution.

Looking to capitalise on high-growth micro-markets in Mumbai or beyond?