Private Equity Investment in Indian Real Estate Rises 32% to $4.15 Bn
Real Estate

Private Equity Investment in Indian Real Estate Rises 32% to $4.15 Bn

Indian real estate attracted $4.15 billion in private equity (PE) investments in 2024, marking a 32 per cent annual increase, driven primarily by higher inflows into the housing sector, according to a report by Knight Frank India. The report, titled Trends in Private Equity Investment in India 2024, was released by the real estate consultancy on Thursday.

The report revealed that private equity investments in Indian real estate reached $4,153 million in 2024. The warehousing sector led the way, accounting for 45 per cent of the total investments, followed by the residential sector at 28 per cent and the office sector at 26 per cent.

In 2024, PE investments in the residential sector more than doubled to $1,177 million, reflecting growing investor confidence in this segment, which has been experiencing consistent demand from end users. The warehousing sector received $1,877 million, while office properties attracted $1,098 million during the same period.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that India had seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth. He explained that the warehousing sector, boosted by the growth of e-commerce and third-party logistics, emerged as the top recipient of investments, followed by the residential sector.

He also mentioned that while the office segment saw a decline, Indian commercial real estate remained resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values.

Mumbai emerged as the most favoured destination, accounting for 50 per cent of the total PE investments in Indian real estate.

The report highlighted that the maximum capital flow came from the UAE, with an estimated $1.7 billion, representing 42 per cent of the total investments in India. Indian investors deployed $1.3 billion in 2024, forming 32 per cent of the total PE investments in Indian real estate.

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Indian real estate attracted $4.15 billion in private equity (PE) investments in 2024, marking a 32 per cent annual increase, driven primarily by higher inflows into the housing sector, according to a report by Knight Frank India. The report, titled Trends in Private Equity Investment in India 2024, was released by the real estate consultancy on Thursday. The report revealed that private equity investments in Indian real estate reached $4,153 million in 2024. The warehousing sector led the way, accounting for 45 per cent of the total investments, followed by the residential sector at 28 per cent and the office sector at 26 per cent. In 2024, PE investments in the residential sector more than doubled to $1,177 million, reflecting growing investor confidence in this segment, which has been experiencing consistent demand from end users. The warehousing sector received $1,877 million, while office properties attracted $1,098 million during the same period. Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that India had seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth. He explained that the warehousing sector, boosted by the growth of e-commerce and third-party logistics, emerged as the top recipient of investments, followed by the residential sector. He also mentioned that while the office segment saw a decline, Indian commercial real estate remained resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values. Mumbai emerged as the most favoured destination, accounting for 50 per cent of the total PE investments in Indian real estate. The report highlighted that the maximum capital flow came from the UAE, with an estimated $1.7 billion, representing 42 per cent of the total investments in India. Indian investors deployed $1.3 billion in 2024, forming 32 per cent of the total PE investments in Indian real estate.

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