Indian real estate market secures US$1b worth of private equity investments in Q1

This is almost five times more than the previous quarter.

India had a tough start to 2022 with the third wave of COVID infections, but investor confidence remained unruffled. 

According to Savills, private equity investment inflows into the Indian real estate sector amounted to US$1.0 billion (INR79 billion) in the first quarter of 2022, almost five times the quantum recorded during Q4/2021. The confidence is also reflected in the fact that Q1/2022 witnessed nearly one-third of the investment inflows which the sector witnessed in the entire 2021. 

Here’s more from Savills:

Commercial office assets remained the frontrunner during Q1/2022, garnering more than a two-thirds share of the investment pie. All of this came from foreign institutional investors and remained concentrated in core office assets in Bengaluru. 

Analysing city level data, Bengaluru attracted a major share (70% of the quarterly private equity investments), followed by Mumbai with a 27% share and Chennai with a 3% share. Besides office, Bengaluru attracted a significant investment by Mapletree Logistics Trust in a development site for a logistics project in Hoskote. 

Global investors’ unabated interest in Indian retail developments coupled with confidence that retail consumption will rebound gradually to pre-pandemic levels, has marked the largest acquisition of an operational retail asset in India in the last five years. Abu Dhabi Investment Authority-backed Lake Shore India Advisory acquired Viviana Mall in Thane from GIC for US$248 million (INR19 billion) during Q1/2022.