Private equity investment inflows into the Indian real estate sector were recorded as USD 1.7 billion (INR 142 billion) during H1 2024, registering a 42% increase YOY. However, the inflows in Q2 2024 were at par with the corresponding period previous year and stood at USD 1.1 billion (INR 96 billion) in Q2 2024, according to the latest findings by Savills India, a global real estate consulting firm.
The quarterly data indicates that commercial office assets maintained their leading position, capturing approximately 51% of the total investment volume. Further, investment in residential sector is picking up pace, as it stands a close second with a 47% share. This could be attributed to the sector’s attractiveness due to sustained demand as well as constant infusion of new projects by developers that is being funded by institutional investors.
The data further suggests that the market is gradually witnessing a rise in investor confidence from the Asian region. Overall, 78% of the quarterly investment was contributed by Asian investors. A significant majority of this was concentrated in office and residential assets in Bengaluru and Hyderabad.
“In H1 2024, PE investment activity into the Indian real estate continued its momentum aided by India’s strong macro-economic scenario. While the commercial office sector maintained the lead due to robust leasing in investible grade assets, the residential sector also saw a notable uptick fueled by sustained demand, thereby reflecting investors’ confidence. Investors from the APAC region have demonstrated a growing interest in the Indian real estate, contributing over 70% of investments in H1 2024.” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
