Preqin has announced that India-focused real estate funds' assets under management (AUM) have grown from $12.7 billion in 2010 to $21.3 billion in 2023. Despite this growth, India represents just 8% of the Asia-Pacific (APAC) real estate AUM, indicating potential for further expansion.
According to Preqin, India's real estate market is poised for growth, driven by regulatory reforms such as the Goods and Services Tax (GST) and insolvency laws that have increased its attractiveness to investors. Urbanization and rising consumption are fueling demand, while supply-side limitations create opportunities for new entrants. Key sectors identified for growth include retail, hospitality, and warehousing.
Affordable and mid-income housing present long-term potential, supported by increasing demand from a young population and government plans to build 30 million new homes. Recent infrastructure improvements are making affordable housing development more viable despite challenges like high land costs and limited financing.
Ongoing regulatory hurdles, including slow land acquisition processes and complex approval systems, continue to pose challenges for real estate projects. However, reforms such as the Real Estate Regulatory Authority (RERA) Act and GST have increased market transparency. Simplifying these processes could attract more foreign investment and promote sustained growth. Additionally, there is a growing need for worker housing, which has historically been overlooked in favor of luxury projects but is now emerging as a new growth area.
India’s economy is rapidly expanding due to strong gross domestic product (GDP) growth, favorable demographics, extensive infrastructure investment, and economic reforms that attract global private capital. According to Preqin reports and data, private capital AUM has more than tripled over the past 15 years, reaching a record $124.3 billion by the end of 2023.
Preqin was founded in 2003 as a data provider serving over 48,000 clients with a workforce of 500 researchers among more than 1,500 staff across 15 global offices. The company specializes in delivering data and insights on alternative assets to enhance decision-making within the finance sector.