homereal estate NewsPrivate equity inflows in real estate fell by 62 percent to USD 1.18 billion in March quarter

Private equity inflows in real estate fell by 62 percent to USD 1.18 billion in March quarter

According to Knight Frank India, private equity investments in real estate decreased 62 percent year on year to USD 1.18 billion during the January-March period. In the same time last year, private equity (PE) inflows totaled USD 3.08 billion.

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By PTI May 23, 2022 9:18:32 PM IST (Published)

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Private equity inflows in real estate fell by 62 percent to USD 1.18 billion in March quarter
Private equity investments in real estate fell by 62 percent year-on-year to USD 1.18 billion during January-March period, according to Knight Frank India. The private equity (PE) inflows stood at USD 3.08 billion in the corresponding period of the last year.

As per the data, PE investments in office segment fell to USD 732 million during January-March period from USD 2,148 million in the year-ago period, while the inflows in residential segment fell to USD 73 million from USD 234 million.
In retail real estate, the investments fell to USD 253 million from USD 484 million. Warehousing segment attracted USD 122 million investment as against USD 216 million in the corresponding period of the previous year.
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In 2021 calendar year, the total PE investments (equity and debt) was recorded at USD 6,199 million, recording a rise of 57 percent YoY over 2020. Office constituted 46 percent of the PE investments in 2021, followed by warehousing (21 percent), residential (19 percent) and retail (13 percent). "Since 2011, the real estate sector received cumulative PE investments of over USD 50 billion (USD 50,809 million)," it said.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "While investors’ appetite remained strong across various real estate asset classes in 2021, escalating global tensions emanating from Russia-Ukraine war and the influence of omicron in the early part of the year were seen inhibiting investment.: Moving forward, he said the push for infrastructure spending will accelerate investments in the next three quarters of the year 2022 to the levels witnessed prior to the pandemic with estimated investments touching USD 6.8 billion.

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