Indian real estate secured USD 4.15 billion in private equity (PE) investments this year, marking a 32% annual growth, driven primarily by increased inflows into the housing sector, according to Knight Frank India.
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Indian real estate witnessed robust growth in private equity (PE) investments in 2024, with inflows reaching USD 4.15 billion, marking a 32% annual increase, according to a report by real estate consultancy Knight Frank India. The report, Trends in Private Equity Investment in India 2024, highlights the significant role of residential and warehousing sectors in driving this surge.
The warehousing sector emerged as the frontrunner, attracting 45% of total investments, equivalent to USD 1.88 billion. This growth is attributed to the expansion of e-commerce and third-party logistics, reinforcing its prominence in India’s real estate landscape.
The residential sector demonstrated remarkable growth, with investments more than doubling to USD 1.18 billion. This surge reflects growing investor confidence, fueled by consistent end-user demand in housing. Meanwhile, the office sector accounted for 26% of total investments, with inflows of USD 1.1 billion. Despite a decline in PE investments, the segment remains resilient, supported by the return to workplaces, higher office absorption, and stronger rental values.
Mumbai retained its position as the top destination for PE investments, commanding a 50% share of the total inflows. The report highlights that UAE investors led the funding, contributing USD 1.7 billion or 42% of the total investments.
Indian investors accounted for USD 1.3 billion, representing 32% of the total capital inflow. Additionally, institutions from Singapore invested approximately USD 633.7 million, showcasing the global appeal of India’s real estate market.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasized the sustained growth of the real estate sector. “India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth,” he said.
Baijal also highlighted the warehousing sector’s dominance, attributing its growth to evolving consumer behavior and logistics needs. “While the office segment saw a dip, Indian commercial real estate remains resilient,” he added.
The strong performance of the residential and warehousing sectors, coupled with increasing foreign and domestic investment, underscores the resilience and potential of Indian real estate. With sustained economic growth and demand across segments, the sector is poised for further expansion in the coming years.
Knight Frank’s findings reiterate the robust investment opportunities in India, cementing its status as a preferred destination for global and domestic investors alike.
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