Hyderabad ranks among the top five cities in India that have attracted significant investments in real estate between 2018 and 2022, with an equity investment of approximately US$ 2.24 billion. According to CBRE South Asia Pvt Ltd’s report, ‘Indian Real Estate: Betting on a ‘Capital’ Future,’ the city saw 24 land deals that amounted to the acquisition of approximately 970 acres of land, totaling US$ 0.9 billion during this period.
The report stated that the city’s investment in land acquisition accounted for over 14 per cent of the total land acquired since 2018 in India. The report further shows that a majority of the capital deployment made since 2018 has been through core and core-plus investment strategies.
Further, the report cited that Hyderabad was abuzz with activity as developers scrambled to acquire land for various projects. The developers’ investment strategy was predominantly opportunistic, with a focus on greenfield projects. The preferred markets for investment were Mumbai, Bengaluru, Hyderabad, and Delhi-NCR. The total investment flows in the residential and mixed-use land parcels accounted for nearly 60 per cent of the total share, representing a substantial investment in the real estate market.
With more developers following suit and investing in the city’s real estate market, Hyderabad is set to experience continued growth and development, cementing its place as one of India’s top cities for real estate investment.
The overall investments in the RE sector between the period 2018-2022 stood at US$ 43.3 billion. Equity investments over this period stood at US$ 31.8 billion while debt investments were US$ 11.5 billion In the first quarter of 2023, development sites and land acquisitions dominated investment flows, accounting for approximately 49 per cent, followed by the office sector at 26 per cent.
Anshuman Magazine, Chairman and CEO CBRE, India, predicts that the investment flows in India will remain steady with cumulative inflow of US$ 16-17 billion over the next two years. He anticipates that the office sector will continue to attract the largest share of institutional inflows, followed by I&L and sites and land parcels.
