India's Real Estate Sector Sees Unprecedented Growth in Private Equity Investments
India's real estate market has witnessed a significant surge in private equity investments, with a total of USD 1.7 billion invested in the first half of 2024, marking a 42% year-on-year increase.
Private EquityReal EstateIndiaSavills IndiaInvestmentReal EstateJul 15, 2024
Commercial office assets have maintained their dominance, 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 both sustained demand for homes and a steady pipeline of new residential projects funded by institutional investors.
The report also highlights a significant rise in investor confidence from Asia, with a notable 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.
Arvind Nandan, Managing Director of Research & Consulting at Savills India, attributes the positive impact of India's strong macroeconomic scenario on private equity investment activity in real estate. He notes 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. Nandan also points out that investors from the Asia-Pacific region (APAC) contributed over 70% of investments in the first half of 2024, demonstrating their growing interest in the Indian real estate market.
This trend suggests a positive outlook for the Indian real estate market, with both commercial and residential sectors attracting significant investment. 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, provides comprehensive research and advisory services to clients in the real estate sector.
Information Savills India is a leading global real estate consulting firm that provides comprehensive research and advisory services to clients in the real estate sector. With a strong presence in India, the firm has been at the forefront of providing insights and intelligence to clients seeking to invest in the Indian real estate market.
Frequently Asked Questions
How much was invested in Indian real estate in H1 2024?
USD 1.7 billion was invested in Indian real estate in H1 2024.
Which sector led the investment volume in H1 2024?
Commercial office assets led the investment volume in H1 2024, capturing roughly 51% of the total investment volume.
What percentage of PE investment volume originated from Asian investors in Q2 2024?
78% of the PE investment volume in Q2 2024 originated from Asian investors.
Which cities are attracting significant investment from Asian investors?
Bengaluru and Hyderabad are attracting significant investment from Asian investors.
What is the outlook for the Indian real estate market?
The outlook for the Indian real estate market is positive, with both commercial and residential sectors attracting significant investment.
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