Private Equity Investments Surge to $1.7 Billion in Indian Real Estate in First Half of 2024

Private Equity Investment Surges in Indian Real Estate Sector

Private equity investment in the Indian real estate sector surged to USD 1.7 billion in the first half of 2024, representing a 42% year-on-year increase, according to a report by Savills India. Despite this overall growth, Q2 2024 investments remained steady at USD 1.1 billion, similar to the figures from the previous year.

Investment Trends in H1 2024

Private equity inflows into the Indian real estate market were recorded at USD 1.7 billion during H1 2024, showing a 42% year-on-year growth, as per Savills India. However, inflows in Q2 2024 matched the previous year's level, totaling USD 1.1 billion.

Sector-Wise Investment Distribution

The quarterly data reveals that commercial office assets maintained their dominant position, capturing approximately 51% of the total investment volume. The residential sector is also gaining momentum, ranking a close second with a 47% share.

This trend can be attributed to the sector's attractiveness due to sustained demand and the continuous introduction of new projects by developers, funded by institutional investors.

Regional Investment Insights

The data also indicates a rise in investor confidence from the Asian region. Overall, 78% of the quarterly investments were made by Asian investors, with a significant portion concentrated in office and residential assets in Bengaluru and Hyderabad.

“Investors from the APAC region have demonstrated a growing interest in Indian real estate, contributing over 70% of investments in H1 2024,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.

Sector	Investment Share
Commercial Office	51%
Residential	47%