Optimistic Surge: Real Estate Investment Reaches Record Heights

The real estate sector is set for robust growth, with a majority of investors planning to increase their allocations in 2025, as revealed by a CBRE survey. With record investment levels in 2024 and diverse opportunities, the market remains promising, especially in data centers and core sectors.

A recent survey by commercial real estate giant CBRE highlights an optimistic outlook for the real estate sector, revealing that 70% of investors intend to boost their allocations this year. The year 2024 witnessed unprecedented capital inflow, and this momentum is expected to continue into 2025.

The report indicates a sustained positive sentiment among investors in the sector, driven by diverse opportunities in core and alternate segments alongside declining debt costs. Residential and office sectors are particularly favored, bolstered by strong fundamentals, a growing appetite for homeownership, and infrastructure improvements.

CBRE's observations also point to a healthy supply pipeline, underpinned by active land acquisitions worth USD 5.8 billion. The office sector shows potential for growth, supported by strategic expansions in global and domestic occupiers, while technology and BFSI sectors remain key demand drivers. Alternate sectors, including life sciences and data centers, are positioned for significant capital inflows spurred by digital transformation and government policy support.

(With inputs from agencies.)