Private Equity inflow in real estate was stable at US$ 4.2 billion in FY23 and NCR gets 32% of investment: Anarock

According to Anarock Capital’s report FLUX, the private equity (PE) investment in the real estate sector was stable in FY23 at US$ 4.2 billion, of which over 22% of contribution came from domestic investors. The Delhi-NCR market received about 32% of the total investment.

It has been reported that foreign investors contributed more than 75% in the real estate sector.

In FY23, the report showed that the domestic investors were a bit more active as the investment value increased by over 50% from US$ 0.6 billion in FY22 to US$ 0.9 billion in FY23. In addition, it was also reported that equity investments were preferred by PE investors with a share of 67% in the fiscal year 2022-23. Moreover, the National Capital Region (NCR), Chennai, Bengaluru, and Hyderabad witnessed increased activity levels in FY23.

Residential segment activity has increased, as seen by the segment's larger share of debt, which increased from 20% in FY22 to 33% in FY23. Office and residential segments continued to dominate PE activity in FY23, with 40% and 29% share, respectively. The mixed-used development attracted 10% of the inflow, real estate 2%, and the industrial, logistics, and data centre together received 6% of PE investments in FY23.

Anarock also noted that across the real estate asset classes, platform deals worth US$ 4.5 billion were announced.

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