MUMBAI: Country's real estate market attracted investments worth nearly $4.5 billion during the January-September period this year, with Mumbai receiving a significant part of it, says a report.
According to property consultant CBRE, institutional investors pumped in $4.5 billion into India's realty sector during the first nine months of 2014, an indication of improved investor sentiment after the formation of a new government at the Centre.
Out of the total investments, land and development stage transactions attracted the highest quantum of nearly 60 per cent from domestic as well as foreign entities during the period, indicating perhaps a significant amount of investment in greenfield and brownfield development, CBRE said.
The commercial office segment, meanwhile, attracted more than 20 per cent of this total investment amount during the period in review.
Mumbai attracted the highest investments, followed by Delhi and Bangalore, the report shows.
In terms of total real estate investments made in Mumbai and Delhi during the period, land and development stage transactions spelt nearly 70 per cent and more than 60 per cent of total realty investments in the cities, respectively.
In case of Bangalore, more than 50 per cent of total investments were attracted by the commercial office segment.
According to the study, office space transactions increased by about 20 per cent year-on-year in the first nine months, with more large-scale space leases and higher lease volumes on an average over the previous year across leading cities in India.
Investors were keen to invest in completed and well-leased core commercial office assets and IT parks across key cities, it said.
"While investor interest in India and southeast Asia steadily increased over the first nine months of the year, this interest is yet to translate into an increase in investment turnover. India, recorded a sizable uptick in business confidence following the coming of a new government earlier in the year," it said.