+
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

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?