Private equity investments in Indian real estate stood at USD 1.3 bln Q2-2023: Report

New Delhi [India], July 12 : Investments in the Indian real estate sector by private equity firms in the April-June 2023 quarter stood at USD 1.3 billion as against USD 704 million recorded in the period last year, according to a report by Savills India, which is into real estate consulting globally.

On a yearly basis, the rise in private investments in Indian real estate sector was about 85 per cent higher.

According to the report, the commercial office assets maintained their leading position, capturing about 66 per cent of the total investment volume during the quarter.

The investments received in this April-June quarter were entirely from foreign institutional investors, with a majority focus inMumbai, Delhi-NCR, and Hyderabad. Additionally, industrial and logistics assets in Delhi-NCR and Mumbai too attracted a significant portion, accounting for 20 per cent of the quarterly investment inflows.

Despite ongoing global recessionary concerns, institutional investors demonstrated their commitments in India and made long-term investments in the sector.

The report said this quarter saw the completion of several large-scale transactions that had been in the pipeline for over a year.

“The influx of private equity investments has not only fuelled the development of large-scale projects but has also supported the growth of niche segments such as warehousing, logistics, and co-working spaces,” said said Diwakar Rana, Managing Director, Capital Markets, Savills India.

According to the Savills India report, GIC, PAG Credit and Markets, and GIC were among the top investors, bringing in funds to the tune of USD 397 million, USD 183 million, and USD 128 million, respectively. The investees, according to the report, were Brookfield, M3M, and Phoenix Group.