Private equity investment in India’s real estate market increased by 85% YoY to $1.3 billion in Apil’23-June’23 (Q2 2023) from $704 million in Q2 2022, according to the report released by real estate consulting firm Savills India. The report stated that commercial office assets maintained their leading position, capturing 66% of the total investment.
The investments in Q2 2023 were entirely from foreign institutional investors, with a majority focused on core office assets in Mumbai, the National Capital Region (NCR) and Hyderabad. Industrial and logistics assets in the NCR and Mumbai accounted for 20% of the quarterly investment inflows.
Despite ongoing global recessionary concerns, institutional investors demonstrated their commitments in India and made long-term investments in the sector. Several large-scale transactions that had been in the pipeline for over a year were completed in this quarter.
Diwakar Rana, managing director, capital markets, Savills India, said “The influx of private equity investments has not only fuelled the development of large-scale projects but has also supported the growth of niche segments such as warehousing, logistics, and co-working spaces.”