Private equity investment in Indian real estate grew by 6% to reach $2.82 billion between April and December 2024, according to real estate consulting company Anarock. This increase was mainly because of higher investments in industrial and logistics parks, even though the total number of deals went down.
Anarock’s data revealed that there were only 24 private equity deals in the first nine months of the current financial year, compared to 30 deals during the same period last year. However, the value of these investments still rose from $2.66 billion to $2.82 billion. This shows that while fewer deals were made, they were much larger in value.
Key Role of Foreign Investments
Foreign funds played a huge role in this growth. They accounted for 82% of all private equity investment in Indian real estate during this time. This highlights the strong interest of global investors in India’s property market.
Breakdown by Asset Type
The industrial and logistics sector attracted the most private equity investment, taking 62% of the total amount. Housing projects received 15%, office spaces got 14%, and mixed-use projects (which combine residential and commercial spaces) accounted for 9%.
Big Deals That Made an Impact
Shobhit Agarwal, the Managing Director and CEO of Anarock Capital, explained that the 10 biggest private equity investment deals made up 93% of the total investments during this period.
One of the biggest deals was the Reliance-ADIA/KKR warehousing agreement, which alone was worth $1.54 billion. Another significant deal was the $204 million partnership between Blackstone and LOGOS. These two deals were the main reasons for the strong growth in the logistics and warehousing sector, which received most of the private equity investment.
What This Means for the Future
The rise in private equity investment shows that investors, especially from other countries, see great potential in India’s real estate market. Industrial and logistics parks are leading the way, proving to be the most attractive options for these investments.
As India continues to develop its infrastructure, it is likely that private equity investment in the real estate sector will keep growing, with global players continuing to show interest.
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