PE investment in Indian real estate touch Rs 56 billion in Q2 2022: Savills India

Private equity investment inflows into the Indian real estate sector stood at Rs 56 billion (USD 704 million), according to the latest data by Savills India, a global property consulting firm. The current macro-economic situation influenced in part by the global tensions, commodity constraints, resultant inflationary pressures and monetary tightening are yet to impact the real estate investment markets. Due to the declining supply of structured credit into residential real estate, the mainstay of PE transactions has been leased office purchase which are high in volume and make the trend lumpier in certain quarters as is also evinced in the 32% quarter-on-quarter decline. "The uptake in office leasing and steady performance of REITs further underpins the strength of this sector. We will also witness more global investor participation in the housing sector which will fill up the void created post the October 2018 crises.” said Diwakar Rana, managing director, Capital Markets, Savills India. As per the data, much like the previous quarter, commercial office assets continued to claim the lion’s share, of the PE investment during Q2 2022. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets across Mumbai, Chennai and the NCR. Source: ET Realty