Private Equity investment up by 58% in NCR realty in the first three-quarters of FY23: Study

As per the ANAROCK Capital’s Flux report, the private equity (PE) players invested US$ 1.2 billion in the real estate of National Capital Region (NCR) in the first three quarters/nine months (9M) of the current financial year (FY23), registering a 58% annual surge, as compared to US$ 771 million in the same period of the last financial year (FY22).

It was reported that the real estate business in NCR in FY23 received more interest from PE players than the Mumbai Metropolitan Region (MMR). In MMR, total PE investments in FY23 stood at US$ 224 million as against US$ 574 million in the corresponding period of the previous financial year.

The report stated that the PE funding in Indian real estate has increased by 3% annually at US$ 3.4 billion in the first three-quarters of FY23, as compared to US$ 3.3 billion in the same period of FY22. The top 10 deals accounted for 76% of the total value of PE investments in nine months of FY23, as against 72% during the same period of FY22. The average deal ticket size rose from US$ 82 million in 9M FY22 to US$ 91 million in 9M FY23.

Additionally, the commercial real estate sector has witnessed increased capital inflows via PE investments, accounting for the highest market share of 55% in 9M FY23 as compared to 33% in the same period in FY22.

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