Foreign Investment in Indian Real Estate: Bengaluru Emerges as a Hotspot
Despite a 6% decline in private equity investments in Indian real estate, Bengaluru witnessed a significant surge, with warehousing emerging as a dominant force.
Real EstatePrivate EquityForeign InvestmentBengaluruWarehousingReal EstateJul 03, 2024
Interestingly, nearly three-fourths of all the private equity that went into Indian real estate came from foreign investors. The national capital region (NCR), around New Delhi, and the IT capital, Bengaluru, attracted 23% of all investments. Investments in Bengaluru more than trebled to $612 million year-on-year, making it a significant contributor to the sector.
The bulk of the nationwide investments, about $1.7 billion, went into warehousing. That's over four times the money invested in the same time a year earlier. Between January and June 2024, warehousing emerged as a dominant force, accounting for half of all private equity investments in Indian real estate.
The growth in warehousing can be attributed to the significant spurt in e-commerce and retail consumption in India. Various asset-level investors are likely to enter the market, boosting the demand for AI-enabled warehouses and micro-fulfilment centers in the upcoming quarters, according to Colliers.
The trend is likely to continue in the coming quarters, with Bengaluru emerging as a key destination for foreign investors looking to tap into the Indian real estate market. The city's strong IT sector and growing demand for warehouse spaces are likely to drive investments in the sector.
Frequently Asked Questions
What was the total private equity investment in Indian real estate in the first half of 2024?
$3.5 billion
Which city attracted the most foreign investment in real estate in the first half of 2024?
Bengaluru
What percentage of private equity investments in Indian real estate came from foreign investors in the first half of 2024?
Nearly three-fourths
What was the dominant sector in private equity investments in Indian real estate in the first half of 2024?
Warehousing
What is driving the demand for warehouse spaces in India?
Significant spurt in e-commerce and retail consumption
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