Private equity investment in Indian real estate

Private equity investment inflows into the Indian real estate sector stood at USD 322 million (INR 26 billion) according to the latest report by Savills India, a global property consulting firm. As many deals are taking longer timelines, Q4 2022 and Q1 2023 should see large announcements on the deals under closure.?

Investors are cautiously observing the intensifying inflationary pressures that are threatening the nascent economic recovery across the world. Global economy is experiencing an overall slowdown owing to the impact of the Russia-Ukraine war, tightening monetary conditions globally and lingering effects of the pandemic.?

Year- PE Investment in Real Estate India

Q3 2022- USD 322 Million

Q2 2022- USD 704 Million

?Q3 2021- USD 477 Million

Data suggests that Commercial office assets continued to remain the frontrunner during Q3 2022, garnering about half (47%) of the investment pie. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets in Mumbai.

Mumbai attracted the majority of investments during Q3 2022, garnering about 73% share in the investment pie. The remaining investments were concentrated in Chennai. While Mumbai attracted investments in office and data centre assets, Chennai’s preferred sectors were residential, industrial and data centre assets.?

“Asset classes such as office, life sciences, data centres, and industrial are witnessing consistent interest and investment inflows. Allocations to the residential sector are also showing green shoots on the back of strong demand and sales. ESG compliance and social impact projects are being preferred by global investors and LPs. In the short term, there will be an impact of interest rates movement, rupee/dollar position, etc.?On a slightly longer term, we will witness new fund managers and investors entering the Indian real estate market which started in 2022.” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

About Savills India:

Savills is a premier professional international property consulting ?rm headquartered in London with a network of more than 39,000 people in over 700 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East. Savills India is a group company of Savills Plc. with full-service o?ces in Bengaluru, Mumbai, Delhi NCR, Chennai, Pune, Hyderabad and Ahmedabad. Savills serves Occupiers, Investors, and Developers of real estate with a host of services including leasing, advisory & transactions, project management, capital markets, valuations and research & consulting. These services cover various asset classes such as commercial, industrial, warehouses and logistics, data centres and residential. For further information, please visit https://www.savills.in/