According to Savills India, private equity invested in Indian real estate during Q3 2024 with marked investment of $2.2 billion.

PE investments in the country have seen a jump of $2.2 billion in the July-September quarter, as compared to $934 million recorded during the corresponding period last year, said Savills India. The growth is due to increasing demand for real estate across the country and, thus increasing appetite from investors’ ends.

PE inflows through the first nine months of 2024 stood at $3.9 billion. That would precisely be the same investment recorded for the whole year 2023. That is quite a sharp recovery in the sector, especially as far as annual PE investment figures go over the past few years: at $6.7 billion for 2019, $6.6 billion for 2020, and $3.4 billion each for 2021 and 2022 and $3.9 billion for 2023.

Commenting on this, Arvind Nandan, MD of Research & Consulting at Savills India, noted: “India has seen an investment spree cutting across global headwinds and year-to-date 2024 inflows have already overtaken all of 2023’s investments. The trend appears to indicate strong investor confidence in the country that remains buoyed by a strong macroeconomic environment.”

The industrial and logistics sectors led the quarters from July to September, bringing in a substantial amount of $1.7 billion.. They made up 77% of total PE investment volume during the quarter. Industrial and logistics growth is largely driven by the opportunities emerging due to demand from e-commerce companies and the Indian government’s efforts to position the country as a hub for manufacturing.

The commercial office space market took the second position at 21% of the total PE investments made during the quarter. Consistent performance in this industry is a testament to investor appetite, sustained by economic recovery and a regrouping of businesses in offices.

Overall, the sharp rise in private equity investments clearly suggests that India’s real estate is truly made of hard stuff and seems to be absorbing capital even under critical external pressure. This sector continues to lead investors’ minds as they seek to better tap into India’s growth potential. Taking these findings from Savills India, the coming months seem bright for this industry with prospects pointing strongly upwards – fostered by overall benign market conditions and spiking demand in all segments.