The total private equity inflows in the real estate sector are expected to be about USD 5 billion in 2021, a 4.1% increase from 2020, according to the company.
NEW DELHI: Private equity investment in Indian real estate touched USD 2.9 billion in the furst hald of 2021, more than a two-fold increase from H1 2020, according to recent report by Colliers.
The total private equity inflows in the real estate sector are expected to be about USD 5 billion in 2021, a 4.1% increase from 2020, according to the company.
Office assets accounted for 35% of the total investments in H1 2021, followed by industrial and warehousing assets with a share of 27%. Investors are viewing the current scenario as an opportunity to snap up properties at attractive valuations.
“The investment trends reflect an interest in broader classes of assets and structures. Deal types include, forward purchase of office assets, formation of platforms and acquisitions with development risks in office assets, opportunistic acquisitions of retail assets, industrial assets including warehousing and data centers, large credit transactions for portfolio acquisitions, and development financing,” said Piyush Gupta, MD, Capital Markets & Investment Services (India), Colliers.
During H1 2021, about 86% of the total investments in the office sector were in land or projects under-construction. Investors continue to scout for either land or assets in under-construction stage, as they look to build their portfolio for a future REIT listing. This is due to limited availability of quality rent-yielding assets at attractive valuations, as most of the large developers are already in partnerships with institutional investors.
Investments in retail assets accounted for 29% of the total investments in H1 2021. Despite Covid posing a significant disruption to retail businesses and causing a major drop in rental revenues, investor appetite remained intact for exposure to stabilized retail assets as well as for investments in ground-up developments in partnership with selective developers.
“For the remainder of the year, we also believe that last-mile funding and investments into distressed housing assets will gain traction whilst many investors are also looking at investing in attractively priced assets, which may not be the current flavour but are expected to witness increasing demand post covid-19 as demand picks up for them,” said Siddhart Goel, senior director & head, Research at Colliers India.
https://realty.economictimes.indiatimes.com/news/industry/pe-investment-in-real-estate-touch-2-9-billion-in-h1-2021-report/84628125
