Indian Real Estate attracted private equity funds of $4.6 billion, across 13 deals in year 2020, says CIRIL report. While total investments are down 57% from a year ago, the drop was cushioned by investors’ unabated appetite for office properties. Of these total investments, the office segment has attracted the largest share of $3.2 billion, claiming 81% share, followed by warehousing at 10% and residential with 9%.
According to CIRIL report, private equity investment in real estate is expected to bounce back to $6 billion, registering a 30% year-on-year growth in 2021, on the back of an improving economic sentiment supported by policy reforms and growth in key emerging sectors. The next wave of investments will be driven by growth in warehousing, affordable housing and data centres apart from the commercial office segment which will continue to see steady improvement, says the report.
“The warehousing and logistics segment has been among the most resilient asset classes in the ongoing pandemic. Warehouse leasing is expected to increase by 60% in 2021 as compared to 2020, and it is expected that private equity investors to assess an opportunity of around $330 million in the industrial and warehousing segment in 2021.”
Next wave of investments to be driven by quantum growth in warehousing, affordable housing and data centres; commercial office segment, meanwhile is expected to remain steady Last 2-3 years have also seen notable interest in newer asset classes such as student housing, data centres, warehousing and opportunistic assets. We expect likely investment of USD 6 billion in 2021 with 30 per cent Y-o-Y growth.