Private equity investments in Indian real estate surge 15% to $3 billion in H1 2024

Private equity (PE) investments in the Indian real estate sector surged 15 per cent (year-on-year) to $3 billion in the first half this year, from $2.6 billion in H1 2023, a report showed on Wednesday.

The warehousing sector accounted for the largest share of 52 per cent of total PE investments in the January-June period, followed by residential (29 per cent) and office (20 per cent), according to the latest data from Knight Frank India.

PE investments in the residential sector also saw a significant increase of over 209 per cent to $854 million in H1 2024, from $277 million in H1 2023.

“The Indian commercial real estate continues to thrive due to factors like a return to work, rising office absorption and strengthening rental values,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Similarly, a year-on-year strengthening of the residential market and continued consumer activities in retail further bolstered by economic growth has incentivised funds to adopt a long-term perspective towards investment in real estate.

The residential sector attracted an investment of $854 million in H1 2024, marking a staggering 209 per cent increase.

Mumbai dominated the PE investment landscape as the city witnessed a significant increase in investment inflows rising from $1.24 billion in H1 2023 to $1.70 billion in H1 2024.

Bengaluru received approximately 20 per cent of the total PE investments, at $581 million.The Indian real estate market is poised for robust growth in the coming years, said the report.