Private Equity Investments in Indian Realty Sector Soar 15% to $3 Billion in H1 2024
Real Estate, Housing, Realty, Investment, Market Trends
Real EstateHousingRealtyInvestmentMarket TrendsReal Estate NewsJul 17, 2024
The growing demand for e-commerce and logistics has driven the warehousing sector, with investments rising 176% year-on-year to $1.532 billion. The residential sector has also seen a significant increase in investments, rising 209% year-on-year to $854 million, with Bengaluru leading the way at $403 million. Although the office sector saw a 67% decline in investments, demand for Grade A office spaces in prime locations remains strong, driven by Global Capability Centres (GCCs) and India-facing businesses.
Mumbai led the investment landscape with $1.701 billion, followed by Bengaluru and Hyderabad. The warehousing sector accounted for 88% of the total PE investments in Mumbai, amounting to $1.5 billion, while the residential sector contributed 12%, amounting to $201 million.
According to Shishir Baijal, chairman and managing director of Knight Frank India, 'Indian commercial real estate continues to thrive due to factors like return to work, rising office absorption, and strengthening rental values.' He added that the easing of conditions in the western world and India's growth trends are expected to lead to increased investment activity from global funds.
The report also highlighted the growing influence of Alternative Investment Funds (AIFs), which have raised $5.3 billion since January 2021, with $2 billion yet to be deployed.
information
Knight Frank India is a leading real estate advisory firm that provides comprehensive services to its clients, including valuation, research, and consulting. The firm has been at the forefront of the Indian real estate industry, providing insights and analysis to investors, developers, and occupiers.
Knight Frank India is a part of the Knight Frank global network, which operates in over 500 offices across 60 countries. The firm has a strong presence in India, with offices in major cities including Mumbai, Delhi, Bengaluru, and Hyderabad.
Frequently Asked Questions
What is the total value of private equity investments in Indian real estate in H1 2024?
$3 billion
Which sector dominated the private equity investments in H1 2024?
Warehousing sector
What is the growth rate of warehousing investments in H1 2024 compared to H1 2023?
176% year-on-year
Which city led the investment landscape in H1 2024?
Mumbai
What is the amount of funds raised by Alternative Investment Funds (AIFs) since January 2021?
$5.3 billion
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