The warehousing sector emerged as the star performer, attracting $1.9 billion, a staggering 136% YoY increase, and accounting for 45% of the total PE inflows. This was driven by rising e-commerce activity and demand for third-party logistics facilities.
Mumbai retained its crown as the most favoured destination for PE investments, capturing 50% of the total inflows, amounting to $2 billion.
Warehousing investments alone contributed 74% of Mumbai’s tally, highlighting the sector’s dominance. Other key cities like Bengaluru and NCR followed, receiving $833 million and $466 million, respectively, with strong contributions from the residential and office segments.
Residential real estate also saw unprecedented growth, with PE investments doubling to $1.2 billion, marking a 104% surge. This uptick reflects investor confidence in growing end-user demand. Meanwhile, the office segment witnessed a 38% decline.
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Among countries, the UAE led capital inflows, contributing $1.7 billion or 42% of the total, followed by domestic investors at 32%. Singapore-based institutions rounded out the top three, investing $633.7 million.
Shishir Baijal, CMD of Knight Frank India, noted, “Economic stability and consistent growth have made India an attractive destination for investments. While warehousing takes the lead, other segments like residential and office spaces continue to show promise, driven by strong fundamentals.”
As India continues its growth trajectory, real estate remains a hotbed for both domestic and international investments, particularly in warehousing and residential markets, the report added.
