According to Knight Frank India, private equity (PE) investments in Indian real estate reached $4.15 billion this year, up 32% yearly, driven mostly by increased inflows into the housing sector.

Knight Frank India, a real estate consultancy, released a research report titled "Trends in Private Equity Investment in India 2024" on Thursday.

The consultant claims that private equity invested $4,153 million in Indian real estate in 2024.

The warehousing industry accounted for the biggest portion of overall investments (45%), followed by the office sector (26%), and the residential sector (28%).

With end-user demand steadily rising, PE investments in the residential sector more than doubled to $1,177 million in 2024, demonstrating investor confidence in this market.

During the current calendar year, office premises received 1,098 million, while warehousing assets received $1,877 million.

According to Knight Frank India's Chairman and Managing Director Shishir Baijal, "India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth."

Driven by the growth of e-commerce and third-party logistics, the warehousing industry was the largest receiver of investments, he continued, with the residential sector coming in second.

"While the office segment saw a dip, Indian commercial real estate remains resilient, supported by factors such as the return to workplaces, increasing office absorption, and strengthening rental values," Baijal stated.

With 50% of all PE investments in Indian real estate going to Mumbai, the city is the most popular location.

Capital flows from the UAE accounted for 42% of all PE investments in India in 2024, with the largest capital flow estimated at $1.7 billion.

In 2024, $1.3 billion was invested by Indian investors, accounting for 32% of all PE investments in Indian real estate.

An estimated $633.7 million was invested in private equity in India by Singaporean institutions and funds.