PE investments in Indian Realty were recorded at US$ 1.92 billion in Q2 of 2023, up 60%

After a slightly muted Q1, the Indian real estate sector witnessed strong private equity (PE) investments of US$ 1.92 billion in Q2 of 2023, demonstrating investor confidence in the market. According to the most recent Investment report from Cushman & Wakefield, this is 63% higher than the previous quarter (Q1 of 2023) and 60% higher than the same time last year.

The office segment has regained its position as the most popular asset class in Q2 by taking about 65% of all quarterly PE flows, mostly because of operational asset acquisitions made in the Delhi NCR, Mumbai, and Hyderabad regions.

According to Mr. Somy Thomas, Managing Director, Valuations and Co-Head, Capital Markets, Cushman & Wakefield, “Retail asset classes are doing mostly double-digit NOI growth on a year-over-year basis and considering the shortage of high-quality retail space, we expect rental growth to continue in the near term.”

According to the report's findings, institutions based in Singapore, Canada, and the US accounted for roughly 84% of their investment from foreign investors.

The second quarter also featured the IPO of Nexus Select Trust, India's first retail Real Estate Investment Authority (REIT), which raised about US$ 390 million from its share sale in May 2023. A total of 45 million square feet is anticipated to be added by the end of the year with the creation of a new office REIT by a group of prominent asset owners.

According to H1-2023 statistics, the study notes a cumulative inflow of about Rs. 24,680 crore (US$ 2.99 billion), which is 51% higher than H1-22, in the first six months of the year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.