Surging Investment: Private Equity's Boost in Indian Real Estate

Private equity investment in Indian real estate increased by 6% to USD 2.82 billion in April-December 2024, driven by industrial and logistics parks. Foreign funds dominate investments, while major deals like the Reliance-ADIA/KKR warehousing deal significantly boosted the sector. Analysts see rising investor confidence in the market.

An increase in private equity inflow into India's real estate sector has been recorded, with investments rising by 6% to USD 2.82 billion during April-December 2024, as per Anarock data. The surge was largely driven by the industrial and logistics sector, accounting for 62% of total investments.

Significant deals, such as the Reliance-ADIA/KKR warehousing deal valued at USD 1.54 billion, along with the Blackstone-LOGOS equity deal at USD 204 million, played a pivotal role in this boost. Hybrid transactions dominated the landscape, making up 55% of the total.

Experts have noted a growing investor confidence in the sector, with the Indian real estate market showing signs of maturity. The diversification into sophisticated product offerings has attracted investments from high-net-worth individuals (HNIs), both domestically and internationally.

(With inputs from agencies.)