Mumbai's residential real estate sector led a remarkable surge in private equity (PE) investment in 2024, reaching $4.2 billion, a 32% year-on-year growth, according to Knight Frank India. This impressive growth highlights the growing confidence of investors in India's real estate market, particularly the residential segment, which witnessed a 104% increase in investment compared to the previous year. Mega cities like Mumbai, Bengaluru, and Delhi-NCR were the most preferred destinations for these investments.
Mumbai emerged as the star performer, accounting for 50% of the total PE investments in Indian real estate in 2024. Of the $2 billion investment Mumbai attracted, the warehousing sector claimed a significant 74%, amounting to $1.5 billion. However, the residential sector in Mumbai also gained traction, drawing $406 million, or 20% of the city's total PE investments, underscoring the sector's potential and investors' confidence in its growth.
Bengaluru also saw robust PE investment activity, securing a total of $833 million. The office sector dominated the city's investment landscape, receiving 52% ($430 million) of the total funds. Residential properties followed closely, capturing 48% ($403 million) of the investments, indicating a balanced interest in both commercial and residential segments in Bengaluru.
In the National Capital Region (NCR), residential real estate attracted $202 million in PE investments, reflecting positive sentiment among investors. Other cities, including Hyderabad, Pune, and Chennai, also experienced substantial investment flows, further showcasing the broad-based growth of India's real estate market.
This surge in residential real estate investment highlights the sector's resilience and potential, with Mumbai, Bengaluru, and NCR leading the charge. The increasing focus on warehousing, office spaces, and residential properties points to a diversified and growing real estate market in India.
© 2023 Rera News. All rights reserved.