Private equity (PE) investments in Indian real estate reached US$ 4.2 billion (bn) in calendar year (CY) 2024, marking a 32% year-on-year (YoY) growth. The warehousing sector led the way, accounting for 45% of total investments as per Knight Frank India report.
Prime Hubs of Warehousing
Investment in the warehousing segment showed a significant upward trajectory in CY 2024, reaching US$ 1.9 bn, a remarkable 136% increase YoY. Geographically, Mumbai and Chennai were the primary beneficiaries, attracting US$ 1,537 mn and US$ 288 mn respectively. Pune attracted US$ 52 mn worth of investments in this sector in 2024.
Pecking Order Of The Occupiers
The warehousing sector emerged as the leader receiving highest investment in 2024, rising sharply to US$ 1.9 bn, from US$ 684 mn in 2023. PE investors are actively engaged in the warehousing market, particularly targeting subsectors such as e-commerce, logistics, and third-party logistics (3PL) facilities. Warehousing sector is experiencing robust growth due to the burgeoning e-commerce industry and an increasing focus of the companies on
supply chain optimization.
City-Level Transaction Volumes
The inherent demand for warehousing is due to growing consumerism and manufacturing coupled with supportive government policies and growing demand from various industries, make it a compelling proposition for PE investors. The warehousing sector is poised to play a pivotal role in shaping the future of Indian real estate.
