Indian Real Estate Sees a Boom in Private Equity Investments
Private equity investments in Indian real estate surge 15% to $3 billion in H1 2024, with Mumbai and Bengaluru leading the way.
Private EquityReal EstateIndiaInvestmentsMumbaiReal Estate MumbaiJul 17, 2024
The warehousing sector has been the largest beneficiary of PE investments, accounting for 52% of the total investment. The residential sector, which attracted $854 million in investments, has seen a staggering 209% increase from H1 2023. The office sector has also seen a significant increase, with 20% of the total PE investments.
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, the Indian commercial real estate continues to thrive due to factors such as a return to work, rising office absorption, and strengthening rental values. The residential market has also seen a year-on-year strengthening, further bolstered by economic growth, which has incentivized funds to adopt a long-term perspective towards investment in real estate.
Mumbai has dominated the PE investment landscape, with a significant increase in investment inflows rising from $1.24 billion in H1 2023 to $1.70 billion in H1 2024. Bengaluru has also received a substantial share of PE investments, with approximately 20% of the total investment, at $581 million.
The report suggests that the Indian real estate market is poised for robust growth in the coming years, driven by the increasing demand for housing and commercial spaces. With the government's initiatives to improve infrastructure and ease of doing business, the sector is likely to attract more PE investments in the future.
Information Knight Frank India is a leading international property consultancy and has been providing expert advice to its clients in India for over 20 years. The company has a strong presence in the Indian market, with offices in major cities such as Mumbai, Delhi, Bengaluru, and Chennai.
Knight Frank India is a leading international property consultancy that provides expert advice to its clients in India. With a strong presence in the market, the company has been at the forefront of providing research-based insights and advisory services to its clients.
Frequently Asked Questions
What is the total private equity investment in Indian real estate in H1 2024?
$3 billion
Which sector has seen the largest share of PE investments in H1 2024?
Warehousing sector
What is the percentage increase in PE investments in the residential sector in H1 2024 compared to H1 2023?
209%
Which city has dominated the PE investment landscape in H1 2024?
Mumbai
What is the total PE investment in Bengaluru in H1 2024?
$581 million
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