Private equity (PE) investment in India's real estate sector increased significantly. It reached USD 3.9 billion (INR 329 billion) from January to September 2024. This growth shows that investors are confident in the real estate market. A recent report from Savills India gives insight into these trends and highlights how different segments of the industry are performing. In the third quarter of 2024, inflows were USD 2.2 billion (INR 186 billion). This represents a remarkable 93% increase from the previous quarter and more than double the investment from the same time last year.
Private equity (PE) investment in India's real estate sector increased significantly, reaching USD 3.9 billion (INR 329 billion) between January and September 2024. This growth reflects the ongoing confidence of investors in the real estate market. A recent report from Savills India provides insight into these trends and highlights the performance of various segments within the industry.
During the third quarter of 2024, private equity (PE) inflows reached USD 2.2 billion (INR 186 billion). This shows a steady interest in real estate investments. Over the years, PE inflows have varied. They were USD 6.7 billion in 2019 and USD 6.6 billion in 2020. In 2021 and 2022, the inflows dropped to USD 3.4 billion. However, in 2023, investment levels rose again to USD 3.9 billion.
In the July-September 2024 quarter, the industrial and logistics sectors performed the best, attracting USD 1.7 billion (INR 144 billion). This amount made up 77% of the total investment. This trend shows that investors are focusing more on sectors that support e-commerce and efficient supply chains. It reflects the changing needs of consumers.
After the industrial segment, the commercial office sector secured 21% of the total PE investments. All investments in this sector came from foreign investors. They are especially interested in key assets in major cities like Chennai, Mumbai, and the National Capita Region (NCR). These areas remain attractive because of their growth potential and ongoing infrastructure development.
Despite global economic challenges, India's real estate market is still attracting significant investment. Investor confidence reflects a strong belief in the country's economic potential. Colliers India also reported that institutional investments in real estate reached USD 4.7 billion in the first three quarters of 2024. This is nearly the same as the amount in the same period in 2023. The office segment made up 54% of these investments, while the residential sector attracted 33%, mainly driven by domestic capital.
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