Realty check: Slump in PE funds

As per real estate consultant Knight Frank , private equity investments in the #realestate sector have declined 20 percent during the January-June 2023 span at USD 2.58 billion. Indian realty saw USD 2.6 billion flowing into office, warehousing, and residential projects during first half 2023. This 20 percent drop is reportedly the outcome of a conservative take by PE bigwigs; however, the report expects a revival in the second half of the year.?For the year 2023, overall PE investments in realty have been projected to touch USD 5.6 billion, which would represent a 5.3 per cent YOY uptick.

It is interesting to note the segment-wise numbers. The residential space saw USD 277 million investments during first half 2023, while office assets and warehousing invited USD 1,750 million and USD 555 million respectively. In terms of share, office space topped the charts at 68 percent followed by warehousing (21%) and residential (11%)?When it comes to the PE sources, close to 75 percent investments emanated from Asian nations, which was a sharp contrast to the picture of the corresponding span of the prior year when US and Canada had pumped the maximum funds (86%) into Indian realty.

• In terms of geography, Mumbai got the maximum PE attention with 48 percent investments
• NCR and Bangalore followed with 32 percent and 13 percent respectively

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