Pvt Equity Investment In Indian Real Estate Up 32 Per Cent In 2024: Knight Frank

New Delhi: Indian real estate attracted USD 4.15 billion of private equity (PE) investments this calendar year, up 32 per cent annually, led by higher inflow in the housing segment, according to a report 'Trends in Private Equity Investment in India 2024' shared by Real estate consultant Knight Frank India on Thursday. The consultant reported that the private equity investment in Indian real estate reached USD 4,153 million (January 1 to December 31) in 2024. The warehousing sector led the way, accounting for 45 per cent of total investments, followed by the residential sector at 28 per cent and the office sector at 26 per cent.

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PE Real Estate Investment Surges 32% in 2024, Led by Warehousing Sector

During 2024, PE investments more than doubled in the residential sector to USD 1,177 million, demonstrating investor confidence in this segment, which has been noting a consistent rise in end-user demand. Warehousing assets received USD 1,877 million, while the office properties 1,098 million during the current calendar year. "India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth," Knight Frank India Chairman & Managing Director Shishir Baijal said, adding the warehousing sector, propelled by the rise in e-commerce and third-party logistics, emerged as the top recipient of investments, followed by the residential sector. 

Warehousing Leads Private Equity Investments in Indian Real Estate, Mumbai Tops as Investment Destination

"While the office segment saw a dip, Indian commercial real estate remains resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values," Shishir Baijal said.

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Mumbai is the most favoured destination, with a 50 per cent share in the total PE investments in Indian real estate. Out of the total PE investments made in 2024, the capital flow has been the maximum from UAE, estimated at USD 1.7 billion, making up 42 per cent of investments in India. Indian investors deployed USD 1.3 billion in 2024, forming 32 per cent of the total PE investments in Indian real estate. Institutions and funds based in Singapore invested an estimated USD 633.7 million in private equity in India.