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.

Private equity investment inflows into the Indian real estate sector stood at $1.0 billion (Rs 79 billion) during Q1 2022, almost 5 times the quantum recorded during Q4 2021, according to the latest report by global property consultancy firm Savills India.

However, 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. Private equity investment inflows into the Indian real estate sector amounted to $1.0 billion in Q1 2022, almost five times the quantum recorded during Q4 2021,” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

“The continued interest from global investors in the Indian retail developments indicates the confidence of investors in this sector,” he added.

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

https://www.financialexpress.com/money/pe-inflows-into-indian-real-estate-up-5x-sequentially-in-q1-2022-report/2494808/