Real estate records highest PE investment in five years: Anarock
Real Estate

Real estate records highest PE investment in five years: Anarock

The Indian real estate sector has recorded the highest-ever private equity (PE) investments since FY2016 despite covid-induced disruptions.

According to a report by Anarock, more than $6.27 billion were invested into the sector in FY21 as against $5.8 billion in FY20, an increase of 19% in one year.

Unlike earlier, private equity investors in FY21 have focused mainly on portfolio deals across multiple cities and assets rather than on specific projects or cities. Such portfolio deals constituted 73% of the overall share, with nearly $4,583 million invested via portfolio deals in multiple cities.

Even as the Covid-19 pandemic adversely affected several industry sectors in FY21, the PE funds pumped into the real estate sector remained strong. As much as 93% of the total PE investments into the Indian real estate market were by foreign investors. In actual terms, investments by foreign PE funds almost doubled from $3 billion to $5.8 billion in FY21. In contrast, domestic PE funds invested merely $300 million compared to $420 million in FY20, the report said.

The average ticket size of PE deals increased by 62% in the fiscal year, from $110 million in FY20 to $178 million in FY2021. Both structured debt and equity witnessed strong growth during the year at 84% and 15%, respectively. Structured debt was largely towards portfolio deals instead of project-level assets.

Among the foreign PE investors that remained major contributors for overall PE inflows in India, the US and Canada-based investors pumped in more than 50% of the total foreign PE investments in FY21, the Anarock report said.

Image Source


Also read: New FDI norms will help revive construction and infrastructure

Also read: NRI investments in Indian real estate may grow at 12%: Report

The Indian real estate sector has recorded the highest-ever private equity (PE) investments since FY2016 despite covid-induced disruptions. According to a report by Anarock, more than $6.27 billion were invested into the sector in FY21 as against $5.8 billion in FY20, an increase of 19% in one year. Unlike earlier, private equity investors in FY21 have focused mainly on portfolio deals across multiple cities and assets rather than on specific projects or cities. Such portfolio deals constituted 73% of the overall share, with nearly $4,583 million invested via portfolio deals in multiple cities. Even as the Covid-19 pandemic adversely affected several industry sectors in FY21, the PE funds pumped into the real estate sector remained strong. As much as 93% of the total PE investments into the Indian real estate market were by foreign investors. In actual terms, investments by foreign PE funds almost doubled from $3 billion to $5.8 billion in FY21. In contrast, domestic PE funds invested merely $300 million compared to $420 million in FY20, the report said. The average ticket size of PE deals increased by 62% in the fiscal year, from $110 million in FY20 to $178 million in FY2021. Both structured debt and equity witnessed strong growth during the year at 84% and 15%, respectively. Structured debt was largely towards portfolio deals instead of project-level assets. Among the foreign PE investors that remained major contributors for overall PE inflows in India, the US and Canada-based investors pumped in more than 50% of the total foreign PE investments in FY21, the Anarock report said. Image Source Also read: New FDI norms will help revive construction and infrastructure Also read: NRI investments in Indian real estate may grow at 12%: Report

Next Story
Real Estate

BXB Estates Sets AED 110 Million Jumeirah Golf Estates Record

BXB Estates has completed an AED 110 million residential transaction at Jumeirah Golf Estates, setting a new sales record for the prestigious Dubai residential community.Negotiated by Alfie Tabrez, Managing Partner of BXB Estates, the deal surpassed the previous record of AED 58 million for a completed ready villa in the development.The six-bedroom residence offers 21,714 sq ft of built-up space on a 15,873-sq-ft plot. It features nine bathrooms, four living lounges, a home office, bar lounge, private cinema and rooftop terrace.The property also includes a dedicated wellness area comprising a ..

Next Story
Infrastructure Urban

SECR Floats Rs 6,019 Mn EPC Tender For Paradol Nagpur Link

South East Central Railway (SECR) has invited bids for an Engineering, Procurement and Construction (EPC) contract to build a new broad gauge single line between Paradol Takeoff Point and Nagpur Road Station in Chhattisgarh. The contract carries an estimated cost of Rs 6,019.0 mn and requires an earnest money deposit of Rs 120.4 mn. The work is framed as an EPC assignment intended to strengthen regional rail infrastructure. The tender, issued under number CAO-C-BSP-26-27-15, specifies a completion period of 730 days and a bid validity of 180 days. Two pre-bid meetings are scheduled for 24 Augu..

Next Story
Infrastructure Transport

Indian Railways Reports Nine Per Cent Rise In July Freight Loading

Indian Railways handled 141.3 million tonnes (141.3 mn t) of freight in July, marking a rise of nine per cent year on year. Freight loading maintained a positive trajectory across the network compared with the same month last year. Passenger traffic also increased in July, contributing to higher overall network utilisation. The July outcome continued a pattern of steady monthly gains, reflecting gradual improvement in industrial and logistics activity. The growth in freight volumes reflected stronger demand across multiple sectors and improvements in logistics and train turnarounds. Enhanced r..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement