Private equity investment in Indian real estate up 32% in 2024 to $4.15 billion: Knight Frank

Indian real estate attracted $4.15 billion of private equity (PE) investments this calendar year, up 32% annually, led by higher inflow in the housing segment, according to Knight Frank India.

Real estate consultant Knight Frank India on Thursday released a report 'Trends in Private Equity Investment in India 2024'.

The consultant reported that the private equity investment in Indian real estate reached $4,153 million in the calendar year 2024.

The warehousing sector led the way, accounting for 45% of total investments, followed by the residential sector at 28% and the office sector at 26%.

During 2024, PE investments more than doubled in the residential sector to $1,177 million, demonstrating investor confidence in this segment which has been noting a consistent rise in end-user demand.

Warehousing assets received $1,877 million while the office properties received $1,098 million during the current calendar year.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, said, "India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth."

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, he added.

"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," Baijal said.

Mumbai is the most favoured destination with a 50% 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 $1.7 billion, making up 42% of investments in India.

Indian investors deployed $1.3 billion in 2024, forming 32% of the total PE investments in Indian real estate.

Institutions and funds based in Singapore invested an estimated $633.7 million in private equity in India.