E-Paper
India’s real estate sector attracted $5 billion private equity in 2019: Report
According to a report by ANAROCK Property Consultants, commercial investment remained a key attraction for PE inflow and the year 2019 saw 66 per cent or USD 3.3 billion injected in the commercial real estate.
Real estate sector in India continued to keep itself afloat in 2019, buoyed by global investment.
The real estate sector received over USD 5.03 billion private equity (PE) inflow in 2019. This is slightly lower, around 2 per cent, compared to the USD 5.13 billion 2018.
According to a report by ANAROCK Property Consultants, commercial investment remained a key attraction for PE inflow and the year 2019 saw 66 per cent or USD 3.3 billion injected in the commercial real estate.
Both retail and residential also saw a favourable rise in investment last year as compared to the year ago.
Of the total investment inflow, 55 per cent was foreign, 8 per cent was domestic, while the remaining 37 was joint investment.
The report said Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) were two of the most attractive destinations for the private equity investors in 2019. Both the destinations together received PE inflows of USD 2.7 billion - a 53 per cent overall PE share - in real estate sector in India in 2019.
Kolkata did not see any PE inflow in 2019, while investment in real estate dwindled in Hyderabad and Chennai last year.
(Source: https://api.anarock.com/uploads/research/ANAROCK%20IB_FLUX_2019.pdf)
ANAROCK Capital MD and CEO, Shobhit Agarwal said, “NCR once again emerged as a major hotbed for private equity activity in 2019. Besides office real estate, the retail sector helped NCR gain traction from both foreign and domestic funds.”
He further said that the residential segment witnessed some green shoots of revival in 2019 and that it is expected to continue in 2020 as the government’s distress are deployed.
The report further said as compared to previous years, investors are currently showing a keen interest in last-mile funding for residential projects that are stuck or being delayed.
In November last year, the government had announced a Rs. 25,000-crore stressed fund to complete delayed housing projects in the country.
Of the major cities, MMR saw a jump of 19 per cent on-year, while NCR stood saw a 333 per cent rise. Pune and Bengaluru saw a rise of 213 per cent and 47 per cent respectively in 2019.
