According to a report by Anarock titled Capital’s Flux Market Monitor for Capital Flows in Indian Real Estate, private equity investment in Indian realty climbed 27 percent to $1.79 billion in the first six months of the current fiscal mainly driven by domestic funds.
Commercial real estate sector attracted 33 percent, followed by industrial and logistics at 30 percent and residential at 22 percent during the first six months of this financial year, the report said.
According to the report, the industrial and logistics segment saw significant investments of approximately $537 million in first half of FY22, comprising a 30 percent overall share of the PE funding. The residential sector saw investments to the tune of $394 million or, approximately 22 percent, of the total PE funds. Data centres, land and mixed-use developments attracted the remaining 15 percent of the overall PE inflows, comprising 5 percent each, the report said.
The share of foreign funds, however, reduced 19 percent during the six months compared to the previous corresponding period. Investments by domestic funds jumped from less than $10 million to $650 million during the corresponding first halves, reflecting their confidence.
The report also revealed that the investors this time preferred single-city deals in contrast to multi-city deals earlier. The top 10 deals in the first half contributed nearly 81 percent of the total PE investments in the country. The share of multi-city deals reduced from 77 percent to 42 percent in H1 FY 2022.
In comparison with the first half of 2020-21, structured debt and equity recorded considerable growth in the first half of this year at 25 percent and 28 percent. Structured debt went primarily towards project-level assets, the report said.