NEW DELHI: Private equity investments inflows into the Indian real estate sector stood at $4.3 billion (approximately Rs 356 billion) during 2024, reflecting a 10% increase year-on-year, according to Savills India, a global property consulting firm.
Foreign institutional investors accounted for 88% of the total investment activity in 2024, reinforcing their dominant role in driving growth in the sector.
The company projects private equity investments in real estate to reach $4.5 billion to $5 billion in 2025.
The industrial and logistics sector emerged as the top destination for private equity inflows, attracting $2.3 billion (approximately Rs 194 billion) and accounting for 54% of the total investments.
While the office sector saw a decline in its share, it remained resilient, supported by the gradual return to workplaces and increasing office space absorption.
The residential sector also gained traction, driven by rising demand for premium housing, while alternative sectors like data centres and life sciences are poised for growth.
The rise of alternative investment funds (AIFs) is likely to bring a structural shift in the investment landscape, with emerging sectors gaining prominence.
