PE inflow in real estate rises 51% in Jan-Jun
Real Estate

PE inflow in real estate rises 51% in Jan-Jun

According to Cushman & Wakefield, private equity investments in real estate increased by 51% year over year to Rs 24,680 crore in the first half of this year.

The amount invested in private equity (PE) from April to June was Rs 15,850 crore (USD 1.92 billion), which was 63% more than the previous quarter and 60% more than the same time last year.

According to a statement from real estate consultant Cushman & Wakefield, the first half of 2023 (January to June) "saw a cumulative inflow of close to Rs 24,680 crore (USD 2.99 billion), which is 51% higher than HI-22, mainly driven by investment in the office segment and also increased investments in alternate segments like logistics & industrial and data centres."

87 percent of the overall inflows were made up of investments in equity.

Indian office markets are one of the most resilient investment classes in the real estate world, with stable occupancies and rental growth beating inflation, according to Somy Thomas, Managing Director, Valuations and Co Head, Capital Markets at Cushman & Wakefield. "Retail asset classes are doing mostly double-digit NOI (Net Operating Income) growth on a YOY basis, and given the dearth of high-quality retail space, we expect rental growth to continue in the near future.

According to Cushman & Wakefield, private equity investments in real estate increased by 51% year over year to Rs 24,680 crore in the first half of this year. The amount invested in private equity (PE) from April to June was Rs 15,850 crore (USD 1.92 billion), which was 63% more than the previous quarter and 60% more than the same time last year. According to a statement from real estate consultant Cushman & Wakefield, the first half of 2023 (January to June) saw a cumulative inflow of close to Rs 24,680 crore (USD 2.99 billion), which is 51% higher than HI-22, mainly driven by investment in the office segment and also increased investments in alternate segments like logistics & industrial and data centres. 87 percent of the overall inflows were made up of investments in equity. Indian office markets are one of the most resilient investment classes in the real estate world, with stable occupancies and rental growth beating inflation, according to Somy Thomas, Managing Director, Valuations and Co Head, Capital Markets at Cushman & Wakefield. Retail asset classes are doing mostly double-digit NOI (Net Operating Income) growth on a YOY basis, and given the dearth of high-quality retail space, we expect rental growth to continue in the near future.

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