Over $5 Bn Private Equity in Indian Real Estate in 2019, MMR and NCR Top Favourites

Mumbai : Indian real estate attracted more than USD 5 bn private equity inflows in entire 2019 – recording a marginal drop of 2% against the preceding year – reveals ANAROCK’s latest study. MMR and NCR were the top favourites for private equity investors in 2019; together, the two regions received close to USD 2.7 bn PE funds, comprising a whopping 53% overall share. Previously in 2018, rather than NCR, it was Hyderabad that was on top in the radar of private equity investors.

The commercial segment continued to lure investors in 2019, with total PE inflows crossing USD 3.3 bn – though reducing by 13% on yearly basis. Meanwhile, both the retail and residential segments saw an uptick in investments in 2019 against the preceding year.

“Total PE inflows in Indian real estate remained more or less the same in 2019 against 2018. However, NCR once again emerged as a major hotbed for private equity activity in 2019. Besides office real estate, the retail sector helped NCR gain traction from both foreign and domestic funds,” says Shobhit Agarwal, MD & CEO – ANAROCK Capital. “Notably in 2019, other than commercial real estate, the retail segment also garnered considerable attention from private equity, based on the high demand for organized retail spaces across the country. Residential saw some green shoots of revival in 2019 and this will continue in 2020 as the Government’s distress funds are deployed. In sharp contrast to previous years, investors are now showing a keen interest in last-mile funding for stuck/delayed residential projects. This, along with the Government support of INR 25,000 crore for stressed projects, will go a long way in relieving residential real estate from its woes.”