Savills India reports a 42% year-on-year increase in PE investments, reaching USD 1.7 billion (INR 142 billion) in H1 2024. Commercial office assets dominated with 51% (USD 867 million) of the total, while residential investments surged to 47% (USD 803 million), reflecting growing investor confidence. Asian investors contributed 78% (USD 1.33 billion) of the Q2 2024 volume, mainly targeting office and residential properties in Bengaluru and Hyderabad. Arvind Nandan of Savills India attributes this growth to India's strong macroeconomic scenario, highlighting the positive impact on private equity investment activity across both sectors.
According to Savills India, a global real estate consulting firm, PE investments reached USD 1.7 billion (INR 142 billion) in the first half of 2024 (H1 2024), representing a 42% increase year-on-year (YOY).
While commercial office assets maintained their dominance, capturing roughly 51% (USD 867 million) of the total investment volume, the residential sector is showing strong growth. Residential investments now account for nearly 47% (USD 803 million) of PE inflows, indicating growing investor confidence. This can be attributed to both sustained demand for homes and a steady pipeline of new residential projects funded by institutional investors.
The report also highlights a rise in investor confidence from Asia. Notably, 78% (USD 1.33 billion) of the PE investment volume in Q2 2024 originated from Asian investors. This influx is primarily focused on office and residential properties in Bengaluru and Hyderabad, two major Indian cities.
Arvind Nandan, Managing Director of Research & Consulting at Savills India, highlighted the positive impact of India's strong macroeconomic scenario on private equity investment activity in real estate. He noted that commercial office assets lead the sector due to strong leasing activity in high-quality buildings exceeding 50,000 sq ft. Additionally, the residential sector is experiencing significant growth, reflecting investor confidence in sustained demand. Nandan also pointed out that investors from the Asia-Pacific region (APAC) contributed over 70% of investments in the first half of 2024, demonstrating their growing interest in the Indian real estate market.
This trend suggests a positive outlook for the Indian real estate market, with both commercial and residential sectors attracting significant investment. The rise of Asian investor interest, particularly focused on Bengaluru and Hyderabad, adds another layer of confidence to the market's continued growth.
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