Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
In the current fiscal year, global investors have displayed a sense of caution in channeling funds into the Indian real estate sector. As of December 12, the PE inflow has registered a notable decline, standing at USD 3 billion, constituting a 44% reduction compared to the entire preceding year, as per Knight Frank's report. The data presented by the real estate consultant reveals that the Indian real estate market witnessed USD 3,024 million in PE investments arising from 23 transactions between January 1 and December 12, in stark contrast to the USD 5,357 million recorded in the year 2022.
The trend of declining PE investments in real estate has persisted since 2021, marking the lowest point in eight years and characterized by near-record low deal volumes. In the current year, a mere 23 deals materialized, with the lowest figure recorded during the pandemic year of 2020 at 20 deals, although the raised amount was higher, standing at around $4 billion. The ongoing global geopolitical uncertainties, along with a high-interest rate environment characterized by multiple rate hikes from the US Federal Reserve and the Central Bank of Canada, have constrained investment activities, particularly affecting the US and Canada.
However, the consultant notes a significant improvement in PE investments from Singapore, contributing over 50% to the total inflow. In terms of the specific segments within the Indian real estate market, office assets have taken the forefront position, commanding a 58% share of the total PE investments, followed by warehousing at 23% and residential properties at 19%. Notably, the retail sector remained devoid of any PE deals in 2023. Despite the overall decline, foreign inflows have been the predominant force driving investments throughout the year, with domestic investment trailing behind.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, observes a noteworthy rise in interest from Asian private equity players, which, particularly amidst the impact on investments from western countries, signals a potentially positive shift for the Indian PE market. Analyzing the geographical distribution of investments across segments, Mumbai emerged as the primary recipient, attracting the largest proportion of investments at USD 1,685 million.
The National Capital Region followed suit at USD 835 million, with Bengaluru securing USD 347 million in PE investments during the specified period. With the gradual easing of global challenges, there is an expectation that the resilience of the Indian economy and the favorable economics of real estate assets will ignite a revival in PE investment activities within the sector.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy