Booming Private Equity Investments in Indian Real Estate
The Indian real estate market is witnessing a surge in private equity investments, with a significant increase in the first half of 2024, driven by commercial and residential sectors.
Indian Real EstatePrivate Equity InvestmentsCommercial Office AssetsResidential SectorSavills IndiaReal Estate NewsJul 15, 2024
Commercial office assets continue to dominate the market, capturing roughly 51% (USD 867 million) of the total investment volume. However, the residential sector is showing strong growth, with residential investments now accounting for nearly 47% (USD 803 million) of PE inflows. This growth can be attributed to sustained demand for homes and a steady pipeline of new residential projects funded by institutional investors.
The report also highlights a rise in investor confidence from Asia, with 78% (USD 1.33 billion) of the PE investment volume in Q2 2024 originating from Asian investors. This influx is primarily focused on office and residential properties in Bengaluru and Hyderabad, two major Indian cities.\r\n\r\nArvind Nandan, Managing Director of Research & Consulting at Savills India, emphasized the positive impact of India's strong macroeconomic scenario on private equity investment activity in real estate. He noted that commercial office assets lead the sector due to strong leasing activity in high-quality buildings exceeding 50,000 sq ft. Additionally, the residential sector is experiencing significant growth, reflecting investor confidence in sustained demand.
The rise of Asian investor interest, particularly focused on Bengaluru and Hyderabad, adds another layer of confidence to the market's continued growth. Savills India, a global real estate consulting firm, has been a key player in the Indian real estate market, providing research and consulting services to investors and developers.\r\n\r\n Information Savills India is a global real estate consulting firm that provides research and consulting services to investors and developers in the Indian real estate market.
The Indian real estate market is poised for further growth, driven by the increasing demand for commercial and residential spaces. The surge in private equity investments is a testament to the market's potential, and the growing interest from Asian investors is expected to further boost the market's growth.
Frequently Asked Questions
What is the total value of private equity investments in the Indian real estate market in H1 2024?
USD 1.7 billion (INR 142 billion)
Which sector dominates the private equity investment volume in the Indian real estate market?
Commercial office assets
What percentage of private equity investments in the Indian real estate market originated from Asian investors in Q2 2024?
78%
Which cities are attracting the most private equity investments in the Indian real estate market?
Bengaluru and Hyderabad
What is the growth rate of private equity investments in the Indian real estate market in H1 2024 compared to the previous year?
42% year-on-year (YOY)
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