PE investment in Indian real estate up 5x sequentially: Report

Private equity investment inflows into the Indian real estate sector stood at USD one billion (Rs 79 billion), during Q1 2022, almost 5 times the quantum recorded during Q4 2021, according to the report by Savills India, a global property consultancy firm.

Meanwhile, PE investment in real estate witnessed a 47% dip when compared to Q1 2021.

As per the report, the first quarter of 2022 has already clocked in nearly one-third of the investment inflows that the sector witnessed in the entire year of 2021.

Commercial office assets continued to remain the frontrunner during Q1 2022, garnering more than two-third share of the investment pie. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets in Bengaluru.

“While the pandemic had slowed the brisk activity in most real estate segments, the third wave didn’t have any notable adverse impact on the sector. The continued interest from global investors in the Indian retail developments indicates the confidence of investors in this sector,” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

Global investors’ unabated interest in Indian retail developments coupled with confidence that retail consumption will rebound once the COVID-19 pandemic is over, has marked the largest acquisition of an operational retail asset in India in the last 5 years, according to the report.

Abu Dhabi Investment Authority-backed Lake Shore India Advisory acquired Viviana Mall in Thane from GIC for USD 248 million (INR 19 billion) during Q1 2022.