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

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