Real estate gets pvt equity investments of $3.2 billion
Mumbai (Maharashtra) [India], April 16 (ANI): Indian real estate recorded $ 3.24 billion in private equity investments (debt and equity) in 19 transactions from January to March (Q1 2021). This is a 16-fold increase from $ 199 million in the first quarter of 2020 Ritter Frank India.
The investments in value in the first quarter of 2021 amounted to 80 percent of the investments in 2020 as a whole and 48 percent in 2019 as a whole, according to their latest research report.
The strong momentum was largely due to two main factors: a spill over certain deals from 2020 and an increase in investor confidence due to the decline in Covid-19 infections in the early parts of the first quarter of 2021, which had some positive effects on the economy .
According to the report, the sustainability of this dynamic in investor sentiment will depend on how quickly the second wave of infections wears off and how quickly vaccination occurs.
Of the total PE investments in real estate, the office segment made up 71 percent, followed by retail with 15 percent, and residential and storage areas with 7 percent each.
Shishir Baijal, chairman and general manager of Knight Frank India, said office real estate continues to be the segment of choice, attracting over 70 percent of PE investment in the first quarter of 2021.
“The segment is moving towards maturity, which includes sustained demand, stability in rental income, and a long-term change in owner profile. Investors expect demand to recover faster as vaccination rates increase.” The office market remained the preferred segment for investors due to the strong fundamentals (availability of large English speaking STEM talent, relatively low rents, established ecosystem for outsourcing knowledge) of the Indian office market.
Since 2011, the segment has raised $ 18.3 billion in equity investments. In the first quarter of 2021, the segment completed seven transactions valued at $ 2.14 billion. Around 31.5 million square meters of office assets were processed in the first quarter of 2021.
Bengaluru has the largest amount of office (equity) investment worth $ 1.5 billion in three deals, followed by Chennai-Hyderabad worth $ 415 million in a single asset deal in both cities. Hyderabad also has $ 143 million from another deal and National Capital Region (NCR) has $ 62 million from one deal. (ANI)