PE Investment Rises To 26% In Real Estate In The First Half Of 2019

According to reports released by Colliers International, Private Equity investment has increased by 26% in the first half of 2019 compared to the same period last year. Institutional Investors have shown a rising interest by investing funds in India’s A-grade offices, retail properties and warehousing projects. The rise of private equity investment by 26% accounts to nearly ₹28000 crore which is driven by higher inflow in commercial and warehousing sector.

The real estate sector has witnessed private equity inflows of $3.9 billion which is eclipsing the first halves of previous years.

PE Inflows from foreign investors has shown an increase of 28% during the first 6 months.

Foreign funds are actively invested in the commercial office space sector.

The year 2019 will see the bulls in play with the increasing capital influx in the office sector. Mumbai is said to have attracted 27% of the total PE inflows with $1.05 billion investments. Pune saw a 10-fold increase in the January – June period with $237 million investments.

Investments in commercial office spaces accounted for 42%. Investments in 2019 are expected to create a new record, for investments in real estate. Investors are also viewing to invest their funds in retail and logistics assets in addition to commercial office spaces. Some recent funds in the logistics sector include Logos, Morgan, Stanley and E-Shang Redwood.

The year began with several large ticket deals in the real estate sector, which is expected to continue well into the second quarter as well. Foreign investors are placing their bets on India, with a strong increase in the commercial office demand, policy and reforms. This indicates a positive trend for real estate in India, looking forward to a successful and progressive future.