Private equity investment inflows into the Indian real estate sector touched $ 2.2 billion in the July-September period, reflecting a 93% growth on a sequential basis, more than double the investment volume recorded in the same period last year, a report by Savills has said.
Additionally, the YTD (January-September 2024) PE inflows stood at $3.9 billion have exceeded the investment quantum registered in the entire year 2023, the report said.
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In the year-ago period, private equity (PE) investments in real estate stood at $934 million.
The PE inflows stood at $ 6.7 billion in 2019, $ 6.6 billion in 2020, $ 3.4 billion in 2021, $ 3.4 billion in 2022, and $ 3.9 billion in 2023, it said.
Maximum PE investments in industrial and logistics sector
The quarterly data indicates that the industrial and logistics segment took the lead, with $1.7 billion capturing 77% of the total investment volume. This could be attributed to rising opportunities in the segment due to growing demand from e-commerce players and governmentโs push towards establishing India as a manufacturing hub, it noted.
The commercial office segment ranked second, garnering 21% of the overall PE investments. All investments in this sector came from foreign investors, focusing on core assets in cities like Chennai, Mumbai and NCR.
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โDespite global challenges, India witnessed heightened investment activity with YTD 2024 inflows surpassing all of 2023 investments, reflecting strong investor confidence on the back of a robust macroeconomic environment. The industrial and logistics segment takes the biggest share in quarterly investments, as diversification strategies take centre stage,โ said Arvind Nandan, Managing Director, Research and Consulting, Savills India.
