PE Investment In Real Estate Rises To $3 billion In January-June Period: Knight Frank

Private equity investments in real estate rose 15% to $3 billion during January-June this year driven by inflow of funds in warehousing assets, according to Knight Frank India.

In its report 'Trends in Private Equity Investment in India: H1 2024' released on Wednesday, property consultant Knight Frank India said that "private equity (PE) investments totalling $3 billion have been made in Indian real estate in the first half of 2024 recording an increase of 15% YoY from $2.6 billion in H1 2023".

The warehousing sector accounted for the largest share of 52% of total PE investments in January-June 2024, followed by residential (29%) and office (20%).

The consultant highlighted that there has been a shift in investor dynamics and sectoral preferences for private equity investments into Indian real estate sector.

"The office sector, which received the highest share of PE Investments since 2018, was surpassed by the warehousing sector, which became the most popular, attracting more investment than the combined totals of the office, retail, and residential sectors," it added.

Private equity investment in the warehousing segment showed a significant upward trajectory in H1 2024, reaching $1,532 million, a 176% increase from the $555 million recorded in the year-ago period.

The PE investments in the residential sector also saw a significant increase to $854 million in H1 2024 from $277 million in H1 2023.

The office sector received $579 million in investments during H1 2024 with a a clear preference for ready assets.