Private equity investments in the Indian real estate sector reached USD 1.7 billion in the first half of 2024, showing a 42% increase compared to the same period last year, according to Savills India.
In Q2 2024, the inflows were consistent with the previous year’s corresponding period, amounting to USD 1.1 billion.
Commercial office assets led the investment volume, accounting for approximately 51% of the total. The residential sector followed closely with a 47% share, indicating growing investor interest.
The increased attractiveness of the residential sector is due to sustained demand and continuous new project development funded by institutional investors.
The data indicates a rise in investor confidence from the Asian region, with 78% of quarterly investments coming from Asian investors. Most of these investments were focused on office and residential assets in Bengaluru and Hyderabad.
“Investors from the APAC region have shown increasing interest in Indian real estate, contributing over 70% of investments in H1 2024,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
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By Ravi Kumar