According to a research released on Wednesday, private equity (PE) investments in the Indian real estate market increased by 15% (year over year) to $3 billion in the first half of this year from $2.6 billion in H1 2023.
According to the most recent data from Knight Frank India, the warehouse sector made up the highest share of all PE investments during the January-June period—52%. Residential real estate came in second—29%—and office real estate, 20%.
PE investments in the residential sector increased significantly as well, from $277 million in H1 2023 to $854 million in H1 2024—a gain of more than 209%.
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, “the Indian commercial real estate continues to thrive due to factors like a return to work, rising office absorption, and strengthening rental values.”
Similarly, funds are being encouraged to take a long-term view when it comes to real estate investment due to the residential market’s year-over-year strengthening and the ongoing consumer activity in retail that is further supported by economic growth.
$854 million in investments were made in the residential sector in H1 2024, a startling 209% rise.
The PE investment scene was dominated by Mumbai, where inflows of capital increased dramatically from $1.24 billion in H1 2023 to $1.70 billion in H1 2024.
With $581 million, Bengaluru accounted for about 20% of all PE investments.
According to the survey, the Indian real estate market is expected to rise at a rapid pace in the upcoming years.
