During 2020, private-equity investments into the Indian real estate sector declined 23% from 2019. At this juncture, investors are also eyeing alternate assets, as well as projects that require last-mile funding.
Some highlights from the report are:
- During 2020, investment inflows into the Indian real estate touched USD4.8 billion, a drop of 23% from 2019. As the economy picked up in Q3 2020, several deals that were stalled in Q2 2020 closed, with transactions rising more than four-fold in H2 2020 over H1 2020.
- Commercial office sector accounted for 46% of the total inflows in 2020, signifying investors’ unwavering confidence despite India’s continuing ‘work from home’ scenario.
- In 2020, investments in residential assets accounted for only 6% of the total inflows. We believe there is ample opportunity for investment funds to finance projects stalled in final stages of construction. This offers lower risk for investors, as project approvals are already in place.
- Investors are also eyeing alternate assets, as well as projects that require last-mile funding.