Private equity investments in Indian real estate soared to $4.2 billion in 2024, reflecting a 32% growth compared to the previous year. The warehousing sector dominated, contributing 45% of the total investments, while the residential sector accounted for 28%, and the office sector made up 26%, according to data from Knight Frank India.
Private equity investments in the residential sector more than doubled to $1.2 billion in 2024, reflecting strong investor confidence driven by a steady increase in end-user demand.
The warehousing sector overtook the office sector, which had been the leading recipient of private equity investments since 2017, highlighting the rising significance of warehousing as a major contributor to private equity inflows in the Indian real estate market.
Mumbai emerged as the top destination for private equity investments, accounting for 50% of the total inflows, $2 billion in 2024, largely fueled by significant investments in the warehousing sector.
The warehousing segment led the way, contributing 74% of Mumbai’s private equity investments at $1.35 billion, while the residential sector secured $406 million, representing 20% of the city’s total private equity inflows.
Bengaluru attracted $833 million in private equity investments in 2024, with 52% directed toward the office sector and the remaining 48% allocated to the residential sector.
“India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth. The warehousing sector, propelled by the rise in e-commerce and third-party logistics, emerged as the top recipient of investments, followed by the residential sector, which benefited from growing consumer demand. While the office segment saw a dip, Indian commercial real estate remains resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values,” said Shishir Baijal, CMD, Knight Frank India.
In 2024, the UAE contributed the largest share of India’s private equity investments, approximately $1.7 billion, or 42% of the total capital inflows. Indian investors followed, deploying $1.3 billion and accounting for 32% of the investment share. Meanwhile, institutions and funds from Singapore invested an estimated $633.7 million in India’s private equity market.
“India is fast becoming a destination of choice for global investors who are attracted by the country’s consistent growth and ambitious economic plans. This year, specifically, we have seen interest from institutions from the Middle East and Asia that are looking for safe investment havens in markets that are largely familiar to them. We expect this trend to continue in the new year as the Indian economy and the real estate sector are expected to grow further,” said Harry Chaplin-Rogers, Director of International Capital Markets – India, Knight Frank.
Investments in the warehousing sector saw remarkable growth in 2024, surging 136% year-on-year to $1.9 billion. Mumbai emerged as the top destination, drawing $1.54 billion, followed by Chennai with $288 million. Pune also contributed to the sector’s expansion, attracting $52 million in investments. This strong momentum underscores the growing importance of warehousing as a key driver in India’s real estate market.
