Private Equity Investments in Indian Real Estate Sector Witness Significant Growth

Private equity investments in Indian real estate sector reached USD 1.7 billion in H1 2024, recording a 42% increase YOY, with commercial office assets and residential sector leading the way.

Private EquityReal EstateIndian Real EstateCommercial Office SectorResidential SectorReal Estate PuneJul 03, 2024

Private Equity Investments in Indian Real Estate Sector Witness Significant Growth
Real Estate Pune:The Indian real estate sector has witnessed a significant surge in private equity (PE) investments, with inflows reaching USD 1.7 billion (INR 142 billion) during the first half of 2024. This marks a 42% increase year-over-year (YOY), according to the latest report by Savills India, a global real estate consulting firm.

The report highlights that commercial office assets maintained their leading position, capturing approximately 51% of the total investment volume. The residential sector is also gaining traction, with a 47% share of the total investment. This growth can be attributed to sustained demand and the influx of new projects by developers, which are being funded by institutional investors.

The data suggests that the market is gradually witnessing a rise in investor confidence from the Asian region, with 78% of the quarterly investment contributed by Asian investors. Bangalore and Hyderabad emerged as the top destinations for investments in office and residential assets.

According to Arvind Nandan, Managing Director, Research & Consulting, Savills India,

Frequently Asked Questions

What was the total PE investment in the Indian real estate sector in H1 2024?

The total PE investment in the Indian real estate sector in H1 2024 was USD 1.7 billion (INR 142 billion).

Which sector led the PE investment in H1 2024?

The commercial office sector led the PE investment in H1 2024, capturing approximately 51% of the total investment volume.

What is driving the growth in PE investments in the Indian real estate sector?

The growth in PE investments in the Indian real estate sector is driven by sustained demand, new project launches, and increasing investor interest from the Asian region.

Which cities emerged as the top destinations for investments in office and residential assets?

Bangalore and Hyderabad emerged as the top destinations for investments in office and residential assets.

What is the outlook for the Indian real estate sector in terms of PE investments?

The Indian real estate sector is expected to continue its upward growth trajectory, driven by sustained demand, new project launches, and increasing investor interest from the Asian region.

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