Private equity investment in Indian real estate at $2.7 bn in 2021
Real Estate

Private equity investment in Indian real estate at $2.7 bn in 2021

Private equity (PE) investment inflows stood at $2.7 billion in the Indian real estate sector during the first half of 2021 despite the pandemic-induced slowdown.

According to the latest report by Savills India, this inflow is equivalent to 41% of the investment that the sector saw in 2020, a sign that investors’ confidence remains intact despite the pandemic-induced slowdown. However, the Indian real estate market saw an investment of $865 million in the second quarter of 2021, a 54% drop from the previous quarter.

During Q2 2021, commercial office assets remained the frontrunner, garnering nearly 40% share of the investment pie, as per the report. This is on the back of the resilience shown by the investable grade office assets, displayed in the successful listing and operations of the three real estate investment trusts (REITs) in India.

While occupancy levels in Embassy Office Parks REIT and Mindspace Business Parks REIT dropped marginally by 1-2% points at the end of March 2021, as compared with those in December 2020. Brookfield India REIT executed a successful initial public offering (IPO) with an eight times subscription, with strong participation from a diverse mix of marquee investors.

Managing Director, Capital Markets, Savills India Diwakar Rana told the media that the first half of 2021 saw some marquee deals by both foreign and domestic investors in the commercial office segment amid the ongoing pandemic.

During Q1 2021, investable grade retail assets consumption pattern showed a positive image as it recovered swiftly to pre-Covid levels of Q1 2020. Savills India’s research observed a renewed interest in the retail segment by private equity institutional investors during Q2 2021 as the segment accounted for the second-highest share, 33% of investment inflows.

Foreign investors such as Canada Pension Plan Investment Board (CPPIB) and Guaranteed Investment Certificate (GIC) formed platforms to invest $285 million in retail assets in Kolkata, Mumbai, and Pune.

Image Source


Also read: Godrej Properties to invest above $1 bn in coming years

Also read: Commercial real estate investments at $1.35 bn in Q1 FY21

Private equity (PE) investment inflows stood at $2.7 billion in the Indian real estate sector during the first half of 2021 despite the pandemic-induced slowdown. According to the latest report by Savills India, this inflow is equivalent to 41% of the investment that the sector saw in 2020, a sign that investors’ confidence remains intact despite the pandemic-induced slowdown. However, the Indian real estate market saw an investment of $865 million in the second quarter of 2021, a 54% drop from the previous quarter. During Q2 2021, commercial office assets remained the frontrunner, garnering nearly 40% share of the investment pie, as per the report. This is on the back of the resilience shown by the investable grade office assets, displayed in the successful listing and operations of the three real estate investment trusts (REITs) in India. While occupancy levels in Embassy Office Parks REIT and Mindspace Business Parks REIT dropped marginally by 1-2% points at the end of March 2021, as compared with those in December 2020. Brookfield India REIT executed a successful initial public offering (IPO) with an eight times subscription, with strong participation from a diverse mix of marquee investors. Managing Director, Capital Markets, Savills India Diwakar Rana told the media that the first half of 2021 saw some marquee deals by both foreign and domestic investors in the commercial office segment amid the ongoing pandemic. During Q1 2021, investable grade retail assets consumption pattern showed a positive image as it recovered swiftly to pre-Covid levels of Q1 2020. Savills India’s research observed a renewed interest in the retail segment by private equity institutional investors during Q2 2021 as the segment accounted for the second-highest share, 33% of investment inflows. Foreign investors such as Canada Pension Plan Investment Board (CPPIB) and Guaranteed Investment Certificate (GIC) formed platforms to invest $285 million in retail assets in Kolkata, Mumbai, and Pune. Image Source Also read: Godrej Properties to invest above $1 bn in coming years Also read: Commercial real estate investments at $1.35 bn in Q1 FY21

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Next Story
Building Material

Sources Unlimited Introduces Vitamine Pendant Lamp by Melogranoblu

Sources Unlimited has launched the Vitamine Pendant Lamp by Melogranoblu in India, expanding its portfolio of curated international luxury lighting solutions. Designed and crafted in Italy, the Vitamine pendant reflects contemporary glass artistry, combining hand-blown craftsmanship with refined aesthetics and atmospheric illumination.The Vitamine Pendant Lamp is sculpted in hand-blown glass and is available in frosted, silver and black metallised finishes. Each finish offers a distinct visual identity while maintaining a cohesive and sophisticated design language. The lamp’s softly contoure..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App