Real Estate PE Investments Soar Amid Strong Demand

Private equity investments in India's real estate sector more than doubled to $2.2 billion in Q3, 2024, driven by strong demand and a robust macroeconomic environment despite global challenges, with industrial and logistics spaces driving the bulk of these investments.

Private equity investments in India's real estate sector surged over two-fold to USD 2.2 billion between July and September, signaling a growing optimism among investors due to strong demand, according to Savills India. This figure marks a significant rise compared to USD 934 million recorded in the same period last year.

Savills India highlighted that the total PE inflows for the January to September period have reached USD 3.9 billion, equaling the total investments registered throughout 2023. This upsurge reflects a robust macroeconomic environment bolstering investor confidence despite global uncertainties.

The majority of these investments were funneled into the industrial and logistics spaces, attracting USD 1.7 billion – accounting for 77% of total investment. This trend is driven by the rising demands from e-commerce and the government's focus on establishing India as a manufacturing hub.

(With inputs from agencies.)