homereal estate NewsPrivate equity inflow in realty sector dips 32% to $4.3bn in FY22: Report

Private equity inflow in realty sector dips 32% to $4.3bn in FY22: Report

Anarock Capital attributed the fall in PE investments in real estate to the COVID-19 second wave, leading to multiple lockdowns in various parts of the country.

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By PTI Apr 13, 2022 3:20:35 PM IST (Published)

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Private equity inflow in realty sector dips 32% to $4.3bn in FY22: Report
Private equity (PE) investments in the real estate sector fell 32 percent to USD 4.3 billion in the last fiscal year mainly due to the COVID-19 pandemic, according to property consultant Anarock. PE investments in real estate stood at USD 6.3 billion in the 2020-21 financial year.

According to Anarock Capital's FY22 year-end edition of its FLUX report, PE inflows in real estate were USD 5.1 billion in FY20, USD 5.6 billion in FY19 and USD 5.4 billion in the 2017-18 fiscal.
The consultant attributed the fall in PE investments in real estate to the COVID-19 second wave, leading to multiple lockdowns in various parts of the country.
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The consultant expects a recovery in PE investments in the real estate sector on the back of widespread vaccine coverage and improved market sentiments. Shobhit Agarwal, MD & CEO, Anarock Capital, said: "Equity continues to remain around 80 percent of the total PE investments in Indian real estate." The commercial sector attracted the highest investment in FY22 (38 percent), followed by the Industrial & Logistics segment (22 percent) and residential (14 percent), he added.
Investments by domestic funds jumped from USD 290 million in FY21, to USD 600 million during the last fiscal year. "The increasing confidence of domestic funds reflects the return of overall positivity after a harrowing year of pandemic disruption and uncertainty," Agarwal said.
As per the report, the average deal size fell 42 percent to USD 93 million in the last fiscal, from USD 161 million in the previous year.

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