Despite the booming real estate sector in the country, private equity investments have declined. A report by Knight Frank India states that private equity investments in the first six months of 2023 fell by 20 percent to $2.58 billion. It explained that these investments came in the first half of this year in all the office, warehouse housing, and residential sectors. Compared to the first half of 2022, there has been a 20 percent decrease. It said that this year’s decline in investments was due to investors being a bit cautious. However, it is expected to pick up in the second half of this year. Overall, PE investments in the real sector this year will reach 5.6 billion dollars, with an annual growth rate of 5.3 percent, Knight Frank believes. Meanwhile, the office sector is in first place with a share of 68 percent of the total PE investments so far. Then there is warehousing with a 21 percent share and residential segments with an 11 percent share. If seen city-wise, Mumbai received the highest (48 percent of PE investments), Delhi attracted 32 percent, and Bangalore 13 percent.
