Private equity investments in Indian real estate touches 3-year high
PE investments jump by a whopping 154 per cent sequentially in April-June quarter
 "Private equity investments in Indian real estate touches 3-year high")
At $2.5 billion, private equity investments in Indian real estate soared to the three-year high in the April-June quarter, according to data shared by real estate consultancy Colliers on Wednesday.
These investments were 20 per cent higher than $2.1 billion in the same quarter last year. As compared to $995.1 million in the January-March quarter this year, the PE investments were up 154 per cent.
Out of the total investments, the industrial & warehousing segment accounted for the highest share of 61 per cent at $1.5 billion.
“Driven by foreign investments, the industrial & warehousing segment witnessed about half of the total inflows in the first half of 2024,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
He added that with India’s Manufacturing Purchasing Managers’ (PMI) Index staying close to 60.0 in the last few months, investor confidence in the industrial & warehousing segment is likely to remain strong throughout 2024.
“Furthermore, strategic infrastructure projects such as Dedicated Freight Corridors (DFCs) and Bharatmala and robust government policies such as National Logistics Policy, underscore substantial long-term growth opportunities for the industrial & warehousing segment in India,” he said.
The segment was followed by the residential sector at $543.5 million.
On the other hand, with investments worth $329 million, the office segment witnessed subdued activity during the quarter. As compared to the same quarter last year. The investments in the segment were down 83 per cent. The quarter-on-quarter drop was relatively modest at 41 per cent.
In the first half of the 2024 calendar year, the total institutional investments touched $3.5 billion, led by a strong April-June quarter. The country had recorded a subdued January-March quarter.
Out of the total, 73 per cent of investment was from foreign investors. In the April-June quarter, this was 81 per cent of the total inflows. The investments were predominantly led by investors from the US and UAE.
“The domestic institutional and retail investor activity in Indian real estate is expected to remain strong in the second half of the year, driven by healthy economic activity and consumer confidence,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.