Real estate seeks rising interest of PE Investments

As per global real estate consultancy, Cushman & Wakefield’s latest report on Private Equity investments in Real Estate,total inflows in the real estate sector increased by 40% in Q1 2016 at INR 3,840 crores / INR 38.4 billion (bn) (USD 577.0 mn), as compared to the corresponding quarter last year. The total number of deals closed during the quarter increased by 13% to 17 from 15 in the corresponding quarter of 2015. Similarly, the average deal size increased by 23% over Q1 2015 to INR 2.3 bn (USD 34.0 mn). Unlike Q1 2015, which saw investments only in residential assets, the first quarter of 2016 witnessed investments across asset classes. The quarter saw over 48% share of total investment activity focussed on residential sector with about INR 1,870 crores / INR 18.7 bn (USD 281.0 mn) of investments. Interestingly, the retail sector witnessed the second-highest investment accounting for 26% of total investments in the quarter since 2008 at INR 1,000 crores / INR 10.0 bn (USD 150.0 mn). The retail sector is seeing interest from foreign funds diversifying their investment portfolio, and some projects being on the block due to the fierce competition in the retail sector. The commercial office sector recorded total investment of INR 470 crore / INR 4.7 bn (USD 71.0 mn) in Q1 2016, as opposed to nil in corresponding quarter of 2015. Interestingly, Hyderabad was the only city which saw investments made in commercial office sector during the quarter, with Blackstone investing in Salarpuria Sattva Group’s project in Knowledge city.

Leave a Reply

Your email address will not be published. Required fields are marked *