PE Investment in Indian Real Estate Sees 42% YoY Surge

Private equity investment inflows into Indian real estate reaches USD 1.7 billion in H1 2024, driven by commercial office and residential assets

Private EquityReal EstateIndiaCommercial OfficeResidentialReal EstateJul 03, 2024

PE Investment in Indian Real Estate Sees 42% YoY Surge
Real Estate:The Indian real estate sector has witnessed a significant surge in private equity investment inflows, with a 42% year-over-year (YoY) increase to USD 1.7 billion (INR 142 billion) in the first half of 2024. According to Savills India, a global real estate consulting firm, the investment inflows in Q2 2024 stood at USD 1.1 billion (INR 96 billion), on par with the corresponding period in the previous year.

The quarterly data reveals that commercial office assets maintained their leading position, capturing approximately 51% of the total investment volume. The residential sector has also seen a significant uptake, with a 47% share, driven by sustained demand and the launch of new projects by developers, which are being funded by institutional investors.

Asian investors have shown growing confidence in the Indian real estate market, with 78% of the quarterly investment coming from the region. A significant majority of this investment was concentrated in office and residential assets in Bengaluru and Hyderabad.

In recent times, the Indian real estate sector has been supported by a strong macro-economic scenario, leading to increased investor confidence. While the commercial office sector has maintained its lead due to robust leasing in investible grade assets, the residential sector has also seen a notable uptick, fueled by sustained demand.

Information
Savills India is a global real estate consulting firm that provides comprehensive advisory services to clients. With a strong presence in India, the firm has been instrumental in shaping the country's real estate landscape.

Savills India is a global real estate consulting firm that provides comprehensive advisory services to clients. With a strong presence in India, the firm has been instrumental in shaping the country's real estate landscape.

Frequently Asked Questions

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

USD 1.7 billion (INR 142 billion)

Which asset class led the private equity investment inflows in Q2 2024?

Commercial office assets

What percentage of the quarterly investment came from Asian investors?

78%

Which cities saw the majority of the investment in office and residential assets?

Bengaluru and Hyderabad

What has driven the uptick in residential sector investment?

Sustained demand and the launch of new projects by developers funded by institutional investors

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