PE investment in real estate at $2.7 billion in H1 2021

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The commercial office assets remained the frontrunner during April-June 2021, garnering about 40 percent share of the investment pie.

PE investment in real estate at $2.7 billion in H1 2021
Private equity (PE) investment inflows into the Indian real estate sector stood at $2.7 billion or Rs 14,300 crore during the first half of 2021. This inflow is equivalent to 41 percent of the investment that the sector saw in the entire year of 2020, according to the latest report by property consultant Savills India.
However, in the second quarter of 2021, the sector saw an investment of $865 million (Rs 6,300 crore), a 54 percent decline from the previous quarter, as per Savills India.
As per the report, commercial office assets remained the frontrunner during April-June 2021, garnering about 40 percent share of the investment pie.
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"This is on the back of the resilience displayed by the investable grade office assets, reflected in the successful listing and operations of the three REITs in India," the report said.
While occupancy levels in Embassy Office Parks REIT and Mindspace Business Parks REIT declined marginally by 1-2 percentage points at the end of March 2021 as compared with those in December 2020, the rents remained stable during this period.
Brookfield India REIT executed a successful IPO with an 8 times subscription, with strong participation from a diverse mix of marquee investors.
"Amid the ongoing pandemic, the first half of 2021 saw some marquee deals by both foreign and domestic investors in the commercial office segment. This demonstrates the strong inherent demand and resilience of the office market while reaffirming confidence of investors into the sector," said Diwakar Rana, Managing Director, Capital Markets, Savills India.
During January-March 2021, the consumption pattern across investable grade retail assets displayed a positive picture as it recovered swiftly to pre-COVID levels of Q1 2020, the report added.
Savills India's research witnessed a renewed interest in the retail segment by private equity institutional investors as the segment accounted for the second-highest share (33 percent) of investment inflows during Q2 2021.
Foreign investors such as CPPIB and GIC formed platforms to invest to the tune of $285 million (Rs 2,100 crore) in retail assets in the cities of Kolkata, Mumbai, and Pune, as per the report.

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CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
Wipro599.15 14.95 2.56
SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
SBI429.15 7.15 1.69
HCL Tech994.25 15.65 1.60
Axis Bank755.25 8.75 1.17

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