Private Equity Investments in Indian Real Estate Soar to 3-Year High
Private equity investments in Indian real estate have reached a 3-year high, with a total investment of $2.5 billion in the April-June quarter.
Private Equity InvestmentsIndian Real EstateIndustrial And WarehousingResidential SectorOffice SegmentReal Estate NewsJul 03, 2024
The industrial and warehousing segment led the investment spree, accounting for 61% of the total investments at $1.5 billion. This is largely driven by foreign investments, with investors from the US and UAE leading the charge. The sector has been buoyed by India's Manufacturing Purchasing Managers' Index (PMI) staying close to 60.0 in recent months, indicating strong investor confidence.
The residential sector followed, with investments worth $543.5 million. On the other hand, the office segment witnessed subdued activity, with investments worth $329 million, down 83% compared to the same quarter last year.
In the first half of 2024, total institutional investments touched $3.5 billion, led by a strong April-June quarter. Foreign investors accounted for 73% of the total investments, with 81% of the total inflows coming from foreign investors in the April-June quarter.
According to Vimal Nadar, Senior Director and Head of Research at Colliers India, the industrial and warehousing segment is likely to remain strong throughout 2024, driven by strategic infrastructure projects such as Dedicated Freight Corridors (DFCs) and Bharatmala, as well as robust government policies like the National Logistics Policy.
Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, expects domestic institutional and retail investor activity to remain strong in the second half of the year, driven by healthy economic activity and consumer confidence.
Overall, the Indian real estate sector is witnessing a significant revival, driven by strong investor interest and government initiatives. With foreign investors leading the charge, the sector is likely to continue its upward momentum in the coming months.
Frequently Asked Questions
What was the total private equity investment in Indian real estate in the April-June quarter of 2024?
$2.5 billion
Which segment led the investment spree in Indian real estate?
Industrial and warehousing segment
What percentage of total investments came from foreign investors in the April-June quarter?
81%
What is the expected trend for domestic institutional and retail investor activity in Indian real estate in the second half of 2024?
Strong, driven by healthy economic activity and consumer confidence
What is the total institutional investment in Indian real estate in the first half of 2024?
$3.5 billion
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