PE flows in real estate fell 62 percent to USD 1.18 billion in the March quarter

According to Knight Frank India, private equity investment in real estate fell 62 percent year-on-year to USD 1.18 billion during the January-March period.

Private equity (PE) inflows stood at 0 3.08 billion in the same period last year.

According to the data, PE investment in the office sector dropped to US 73 732 million during the January-March period, down from USD 2,148 million in the same period a year ago, while flows in the residential sector dropped from US 23 234 million to US 73 73 million.

In retail real estate, investments dropped from USD 484 million to US 253 million. The warehousing sector attracted 12 122 million in investments, up from 6 216 million in the same period last year.

In the 2021 calendar year, total PE investment (equity and debt) recorded USD 6,199 million, a YoY 57 percent increase over 2020. Office made up 46 percent of PE investments in 2021, followed by warehousing (21 percent), residential (19 percent) and retail (13 percent).

“Since 2011, the real estate sector has received a growing PE investment of USD 50 billion (USD 50,809 million),” it says.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: Investment has been seen to be hampered over the years. He said the push for infrastructure spending would accelerate investment in the next three quarters of 2022, which would touch an estimated 8 6.8 billion at pre-epidemic levels.

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