Private equity investment in Indian real estate rose 6 per cent to USD 2.82 billion during the April-December period of this fiscal, driven by a surge in fund inflow in industrial & logistics parks, according to Anarock.

Real estate consultant Anarock data showed that the Private Equity (PE) investment in real estate rose 6 per cent to USD 2.82 billion during the April-December period of this fiscal from USD 2.66 billion in the year-ago period.

Magicbricks Research highlights a 46.8% YoY increase in under-construction residential supply across major cities, reflecting heightened developer activity in response to strong market demand. Bengaluru leads this trend with an impressive 114% YoY growth, followed by Gurugram at 98%. Over the last quarter alone, under-construction supply grew by 10.97%, with Gurugram (30.97%), Kolkata (27.80%), and Bengaluru (27.39%) showing the most significant increases.

Indian real estate sector saw more land deals in 2024 at over 2,200 acres as developers were looking to expand the business, according to CBRE. Real estate consultant CBRE data showed that land deals of more than 2,200 acres last year as against about 1,900 acres in the preceding year.

Out of the total land transactions in 2024, around 2,000 acres were located in the eight major cities -- Delhi-NCR, Bengaluru, Mumbai, Chennai, Pune, Hyderabad, Kolkata and Ahmedabad.

Rising urban housing costs: India is witnessing rapid urbanisation, with millions migrating to cities every year in search of opportunities. However, rising housing costs pose challenges to the economic stability and social equity of the changing demographics. Recent data from the Household Consumption Expenditure Survey show that the share of rent in consumption expenditure has risen to 6.58% — the highest in two decades. In urban areas, housing inflation, measured through the consumer price index, has been steadily climbing.

Bengaluru may have witnessed an increase in housing prices by around 5% to 10%, especially in areas close to the city centre and the IT corridors. That said, some areas on the outskirts of Sarjapur, Whitefield in the east, and southern parts such as Kanakapura Road still offer affordable options to buyers with a budget of less than a crore.

Gulam Zia, Senior Executive Director at Knight Frank India, identified two clear areas of stress in the India’s property market.

Hyderabad's residential market showcased steady growth in the under-construction segment during Q4 2024 (October–December), with supply increasing by 4.5% year-on-year (YoY), according to Magicbricks Research. This growth highlights the city’s robust real estate dynamics, supported by its expanding economic base and rising preference for premium housing.

The Indian real estate sector attracted equity investments of $11.4 billion last year, up 54% annually, mainly from developers and institutional investors. Mumbai and Delhi-NCR were the top destinations for investment inflows in 2024, each accounting for around 25% of the total, according to a report by CBRE on December 10.

According to a report by CBRE, Bengaluru was third with around 14% equity investments, followed by Chennai at around 8% and Hyderabad at around 6%.

Real estate fractional ownership platform Strata has announced that it has received a licence from the Securities and Exchange Board of India (SEBI) to launch small and medium-scale real estate investment trusts (SM REITs).

This is the fourth such licence granted by the capital market regulator, after Property Share, REPL, and Emberstone, of which Property Share has listed its first scheme- Propshare Platina.

Ahmedabad is one of the most preferred real estate destinations owing to its affordability and a thriving economy that offers plenty of employment opportunities. In addition, there are emerging IT companies and reputed educational institutions attracting a lot of working professionals and students. Moreover, upcoming infrastructure projects like the Ahmedabad Metro expansion and Mumbai–Ahmedabad High-Speed Rail Corridor present a positive picture for investors as these projects are likely to push the demand for properties further, resulting in higher returns.