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.