Mumbai, Dec 19 (NationPress) Private equity (PE) investments in the Indian real estate market hit $4.2 billion in 2024, showcasing a remarkable 32% year-on-year (YoY) increase, driven by strong demand in the warehousing sector, as indicated by a report released on Thursday.

Knight Frank India, a global property consultancy, stated in its report that the warehousing sector is at the forefront, contributing 45% of total investments, followed by the residential sector at 28% and the office sector at 26%.

According to the report, investments in the residential sector more than doubled, witnessing an impressive 104% surge in PE investments, totaling $1.2 billion this year. This growth reflects a strong investor confidence as end-user demand continues to rise.

Mumbai stands out as the prime destination, accounting for 50% of all PE investments in the country, with $2 billion directed towards warehousing in the city.

The warehousing sector dominated Mumbai's landscape, securing 74% of total PE investments, which translates to $1.5 billion, while the residential sector attracted $406 million, representing 20% of the city's total PE investment.

Bengaluru followed with a total of $833 million in PE investments in 2024. Approximately 52% of this amount, or $430 million, was allocated to the office sector, with the remaining 48% or $403 million directed towards residential investments.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted that India has experienced a surge in investments, particularly over the last decade, fueled by economic stability and continuous growth.

“The warehousing sector has emerged as the primary recipient of investments, driven by the growth in e-commerce and third-party logistics, followed by the residential sector, which has benefitted from increasing consumer demand,” stated Baijal.