India's Warehousing Sector Sees Largest Share of PE Investments

The Indian real estate sector has witnessed a significant surge in private equity investments, with the warehousing sector emerging as the top recipient.

Real EstatePrivate EquityWarehousingMumbaiBengaluruReal Estate NewsJul 24, 2024

India's Warehousing Sector Sees Largest Share of PE Investments
Real Estate News:The Indian real estate sector has seen a substantial increase in private equity (PE) investments, with a total of $3 billion invested in the first half of 2024. According to a report by Knight Frank India, titled 'Trends in Private Equity Investment in India H1 2024', this marks a 15% year-over-year (YoY) increase from $2.6 billion in H1 2023.

The warehousing sector accounted for the largest share of 52% of total PE investments in January – June 2024, followed by residential (29%) and office (20%). This marks a significant shift in investor dynamics and preferences within the private equity investments in the Indian real estate sector. The office sector, which had been receiving the largest share of PE investments since 2018, has been overtaken by the warehousing sector.

The warehousing sector has now become the most popular, drawing more investment than the combined totals of the office, retail, and residential sectors. This can be attributed to the growing demand for logistics and supply chain management in India.

Mumbai dominated the PE investment landscape, with a significant increase in PE investment inflows rising from $1,242 million in H1 2023 to $1,701 million in H1 2024. The warehousing sector accounted for 88% of the total PE investments in Mumbai, amounting to $1,500 million, while the residential sector contributed 12% amounting to $201 million.

Bengaluru received approximately 20% of the total PE investments, totalling $581 million in H1 2024. Around 69% of these investments, amounting to $403 million, were dedicated towards the residential sector. The remaining 31% or $178 million were invested in the office sector.

Information
Knight Frank India is a leading international property consultancy firm that provides a comprehensive range of services across various asset classes. With offices in Delhi, Mumbai, and Bengaluru, the firm has a strong presence in the Indian real estate market.

Knight Frank India is a renowned real estate consultancy firm that provides expert advice to clients across various sectors, including residential, office, retail, and warehousing.

Frequently Asked Questions

What was the total private equity investment in Indian real estate in H1 2024?

$3 billion

Which sector accounted for the largest share of PE investments in H1 2024?

Warehousing sector

What was the percentage increase in PE investments in the residential sector in H1 2024?

209%

Which city dominated the PE investment landscape in H1 2024?

Mumbai

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