PE investment in real estate increases to $2.2 bn in Jul-Sep: Savills India

Private equity investments in the real estate sector jumped over twofold to $ 2.2 billion in July-September as investors look for gains amid strong property demand, according to Savills India.

In the year-ago period, private equity (PE) investments in real estate stood at $ 934 million.

Real estate consultant Savills India also noted that the PE inflows stood at $ 3.9 billion during the January-September period of this calendar year, touching the investment quantum registered in the entire 2023.

The PE inflows stood at $ 6.7 billion in 2019, $ 6.6 billion in 2020, $ 3.4 billion in 2021, $ 3.4 billion in 2022, and $ 3.9 billion in 2023.

"Despite global challenges, India witnessed heightened investment activity with YTD 2024 inflows surpassing all of 2023 investments, reflecting strong investor confidence on the back of a robust macroeconomic environment," said Arvind Nandan, Managing Director, Research & Consulting, Savills India.

During the July-September quarter, the consultant highlighted that the industrial and logistics spaces segment attracted $ 1.7 billion in PE investments, capturing 77 per cent of the total investment volume.

This could be attributed to rising opportunities in the segment due to growing demand from e-commerce players and the government's push towards establishing India as a manufacturing hub, the consultant said.

The commercial office segment ranked second, garnering 21 per cent of the overall PE investments in the September quarter.