Asian investor share in Indian real estate rises to 47% in 2023
economictimes.indiatimes.comSavills India data.
Despite occasional disruptions and sporadic inflation, India has demonstrated resilience, outpacing comparable economies with a growth rate of 7.2% in FY23 and promising projections for the future. The real estate sector, constituting about 7.3% of India's GDP, has undergone notable transformations, especially in its financing landscape post-pandemic, with renewed confidence from private equity funds.
“To drive further growth, we must expand our asset pool and enhance the investor-friendly environment. Simplifying regulations and addressing sector-specific challenges are crucial for boosting investor confidence and unlocking new opportunities. With a promising economic outlook and conducive policies, India's real estate is sure to tread the growth path,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
Private equity investors injected USD 10.7 billion (INR 843 billion) into the sector across nearly 100 deals from 2021 to 2023. Transaction volumes have increased by over 25% annually, with investment values rising 13.7%, reaching USD 3.9 billion in recent years.
The average deal sizes have ranged between USD 100-120 million (INR 8.3-9.9 billion) during this period. Notably, the office segment secured the majority share of investments at 51%, followed by industrial & warehousing at 20%, while diversification into sectors like data centres, life sciences, and student housing reflects evolving investor preferences.
PE institutional investors are increasingly
