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PE investment in Indian Real Estate at $1.3 bn in Q2 2023: Savills India

July 12, 2023: Private equity investment inflows into the Indian real estate sector stood at USD 1.3 billion (INR 104 billion), according to the latest report by Savills India, a global real estate consulting firm. 

The data indicates that commercial office assets maintained their leading position, capturing approximately 66% of the total investment volume. The resilience of investible grade office assets supported this dominance.

Time PeriodPE Investment in Real Estate India
Q2 2023USD 1.3 billion
Q2 2022USD 704 million

Source: Savills India Research

The report further suggests that the investments received in this quarter were entirely from foreign institutional investors, with a majority focusing on core office assets located in Mumbai, Delhi-NCR, and Hyderabad. Additionally, industrial and logistics assets in Delhi-NCR and Mumbai attracted a significant portion, accounting for 20% of the overall quarterly investment.  

Despite ongoing global recessionary concerns, institutional investors demonstrated unwavering commitment and made long-term investments in the Indian real estate sector. This quarter saw the completion of several large-scale transactions that had been in the pipeline for over a year.

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“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. The introduction of India’s maiden retail REIT, the Blackstone-backed Nexus Select Trust REIT is expected to attract increased interest from both domestic and international investors. This development signifies the growing maturity of the market and the growing recognition of real estate as an appealing asset class for investors.” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

Key transactions – India

InvestorInvesteeInvestment Quantum (USD million)
GICBrookfield397
PAG Credit & MarketsM3M183
GIC Phoenix Group128

Source: Savills India Research

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