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Indian real estate attracted $6.2 billion or Rs 43,704 crore private equity investments in the year 2019

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The office segment attracted $3.1 bilion from institutional investors in 2019, accounting for a 50.1% share of total investments during the year.

Indian real estate attracted $6.2 billion or Rs 43,704 crore private equity investments in the year 2019 driven mainly by institutional investors’ interest in office assets. Total investment into the country’s realty assets rose 3% from a year ago, showed data from Cushman & Wakefield India.

The office segment attracted $3.1 bilion from institutional investors in 2019, accounting for a 50.1% share of total investments during the year. Foreign investors made up a significant share of 72.9% of overall investment inflows. Equity capital infusion formed 80.5% of the total investment inflows during 2019, up from a 64% share in 2018.

“The PE activity observed in 2019, with volumes touching Rs 43,704 crore, confirms the confidence of institutional investors in the Indian real estate market. With strong demand in the commercial segment, investor interest has remained robust in this asset class, for core and build-to-core opportunities, despite the tepidness in the residential sector,” said Anshul Jain, Country Head & Managing Director, Cushman & Wakefield India.

He expects investment volumes to remain healthy on account of anticipated deployment of fund commitments that have been made across the office and warehousing and logistics platforms. In addition, strategic investments in alternative segments like co-living, student housing, co-working, and data centers are likely to garner active interest from institutional investors.

Interestingly, the absolute numbers of investment deals were lower by 17% from a year ago, pointing towards an increase in ticket size per deal and a spike in large sized transactions valued at over Rs 1,000 crore during the year.

Platforms joint ventures between foreign investors and domestic entities remain a bright spot indicating long term and patient capital being invested into the sector. These long-term partnerships aimed at greenfield, brownfield developments especially in the commercial segment including office and retail properties and industrial segments is a sign of increasing institutionalization in the real estate sector. 

Source: TNN

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)

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  1. Pingback: Godrej Properties will acquire 26.58 acres land in New Delhi from the Railway Land Development Authority – www.sthirasti.com

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