MUMBAI: Private equity (PE) investment in the Indian real estate sector will reach $4.2 billion in 2024, registering an annual growth of 32% on high demand in the warehousing segment, a report showed on Thursday.
International real estate consultancy Knight Frank India said in a report that the warehousing sector leads the way, accounting for 45% of the total investment, followed by residential at 28% and office buildings at 26%.
“Private equity investment in the residential sector has more than doubled, with private equity investment increasing 104% this year to US$1.2 billion, demonstrating investor confidence in this sector and end-user demand continuing to grow,” the report mentioned.
Mumbai is the most favored destination, accounting for 50% of total private equity investment in the city, and the private equity investment landscape is set to attract $2 billion in 2024, driven by heavy investments in warehousing in the city.
The warehousing sector accounted for 74% of total private equity investment in Mumbai at $1.5 billion, while the residential sector attracted $406 million or 20% of total private equity investment in the city.
“Bengaluru received total private equity investment of USD 833 million in 2024. About 52%, or USD 430 million, was invested in the office sector, while the remaining 48%, or USD 403 million, was invested in the residential sector,” the report states. additional.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said investment in India has increased, especially in the past decade, driven by economic stability and continued growth.
“The warehousing sector emerged as the largest recipient of investment, driven by the rise of e-commerce and third-party logistics, followed by the residential sector which benefited from growing consumer demand,” Baijal said.