Private Equity Investment in Indian Real Estate Grows to USD 3.9 Billion in 2024
Private equity (PE) investment in India's real estate sector surged to USD 3.9 billion (INR 329 billion) from January to September 2024, reflecting strong investor confidence in the market.
Private EquityReal EstateInvestmentIndiaSavills IndiaReal EstateOct 14, 2024
In the third quarter of 2024 alone, PE inflows amounted to USD 2.2 billion (INR 186 billion), demonstrating a steady and consistent interest in real estate investments. The report highlights that over the years, PE inflows have fluctuated. In 2019, the inflows were USD 6.7 billion, and in 2020, they were USD 6.6 billion. However, in 2021 and 2022, the inflows dropped to USD 3.4 billion before rebounding to USD 3.9 billion in 2023.
One of the standout segments in the July-September 2024 quarter was the industrial and logistics sectors, which attracted USD 1.7 billion (INR 144 billion), accounting for 77% of the total investment. This trend underscores the growing importance of e-commerce and efficient supply chains, reflecting the evolving consumer needs and preferences.
Following the industrial segment, the commercial office sector captured 21% of the total PE investments. Notably, all investments in this sector came from foreign investors, who are particularly interested in key assets in major cities such as Chennai, Mumbai, and the National Capital Region (NCR). These areas are highly attractive due to their strong growth potential and ongoing infrastructure development.
Despite the global economic challenges, India's real estate market continues to attract substantial investments. This is a testament to the robust economic potential of the country. Colliers India reported that institutional investments in real estate reached USD 4.7 billion in the first three quarters of 2024, nearly matching the amount invested in the same period in 2023. The office segment accounted for 54% of these investments, while the residential sector attracted 33%, primarily driven by domestic capital.
Savills India is a leading real estate services and investment management company, providing comprehensive solutions for clients in the property sector. Their insights and reports are widely recognized for their depth and accuracy, making them a trusted source for investors and stakeholders in the real estate industry.
Frequently Asked Questions
How much private equity investment did India's real estate sector receive from January to September 2024?
India's real estate sector received USD 3.9 billion (INR 329 billion) in private equity investment from January to September 2024.
Which sector attracted the most investment in the July-September 2024 quarter?
The industrial and logistics sectors attracted the most investment in the July-September 2024 quarter, with USD 1.7 billion (INR 144 billion) representing 77% of the total investment.
What percentage of total PE investments went into the commercial office sector in Q3 2024?
21% of the total PE investments went into the commercial office sector in the third quarter of 2024.
Which cities are particularly attractive to foreign investors in the commercial office sector?
Major cities like Chennai, Mumbai, and the National Capital Region (NCR) are particularly attractive to foreign investors in the commercial office sector.
What is the significance of institutional investments in India's real estate market in 2024?
Institutional investments in India's real estate market reached USD 4.7 billion in the first three quarters of 2024, reflecting strong investor confidence and the market's robust economic potential.
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