Home / Industry / PE investments in real estate up 28% in Q1 FY23, says report

NEW DELHI: Private equity (PE) investments into India's real estate sector rose 28% year-on-year in the April-June quarter of the current fiscal (Q1 FY23), as per Anarock Capital’s FLUX report. Improved market sentiment, widespread vaccine coverage, and lifting of lockdown restrictions helped.

"The revival primarily rode on the top 5 private equity deals, which accounted for 90% of total value of PE investments in Q1 FY23. There has been 53% increase in average ticket size in Q1 FY23 when compared to Q1 FY22. Equity contribution to the total PE investments in Indian real estate increased to 87% in Q1 FY23 from 84% in Q1 FY22," said Shobhit Agarwal, MD & CEO, Anarock Capital.

Unlike Q1 FY22, activity in Q1 FY23 shifted back to multi-city deals. The national capital region (NCR) received significant attention from PE investors, with the highest city-wise inflow in Q1 FY23 at at 48%, a huge increase from 1% in Q1 FY22.

In Q1 FY23, deployments by JV platforms in the commercial real estate space rose a significant 74%, especially in Grade A office spaces which have been drawing high investor interest.

Industrial & Logistics segment also showed increased potential, with the creation of a new JV platform between Ivanhoe Cambridge, Bain Capital & Macrotech Developers at an investment of $1 billion, as per the report.

Foreign PE investors displayed increased confidence, with their contribution increasing to 89% in Q1 FY23 from 83% in Q1 FY22, as per the report.

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