Kolkata: Private equity (PE) investments in Indian real estate reached US$ 4.2 billion (bn) in calendar year (CY) 2024, marking a 32 percent year-on-year (YoY) growth, according to Knight Frank India data released on Thursday.
The warehousing sector led the way, accounting for 45 pc of total investments, followed by the residential sector at 28 pc and the office sector at 26 pc, according to the leading international property consultancy.
In 2024, PE investments more than doubled in the residential sector which saw a remarkable 104 pc increase in PE investments, amounting to US$ 1.2 bn in 2024, demonstrating investor confidence in this segment.
The report observed a significant change in investor focus and sectoral preferences, with the warehousing sector surpassing the office sector, which had held the highest share of PE investments since 2017, underscoring the growing importance of warehousing as a key driver of private equity inflows into the Indian real estate
market.
Mumbai is the most favoured destination with 50 pc of total PE investments in the city, driven by large volumes of investment in warehousing in the city, PE investment landscape in 2024, attracting US$2 Bn in 2024.
The warehousing sector dominated with 74 pc of the total PE investments in Mumbai, amounting to US$ 1,537 mn while the residential sector attracted US$406 mn, making up 20 pc of the total PE investment in the city.
Bengaluru received total PE investments US$ 833 mn in 2024. Around 52 pc of these investments, amounting to US$ 430 mn, was towards the office sector, while the remaining 48 pc or US$ 403 mn, was invested in the residential sector.
“India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth. The warehousing sector, propelled by the rise in e-commerce and third-party logistics, emerged as the top recipient of investments, followed by the residential sector, which benefited from growing consumer demand. While the office segment saw a dip, Indian commercial real estate remains resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values. Looking ahead, an anticipated easing of economic conditions in the Western world is likely to revive global investment flows. Coupled with India’s robust growth trajectory, this is expected to drive greater investment activity from international funds.” Knight Frank of India Chairman Shishir Baijal said.
UNI
