PE investments into India’s property sector slump 45% to USD477m in Q3

Data centres accounted for 34% of all investments during the quarter.

Private equity investment inflows into the Indian real estate sector declined 45% QoQ to USD 477 million (INR 35 billion) in the third quarter of 2021. According to Savills data, the investment inflow amounted to USD 3.3 billion (INR 233 billion) during January through September 2021, equivalent to almost half (49%) of the investment inflows that the sector witnessed in entire 2020. 

“The temporary slowdown in investment activity can be attributed to delayed decision-making by investors in the face of the pandemic. However, on the back of a successful vaccine administration programme, we expect business confidence to progressively gain momentum and the sector to start showing signs of recovery over the next six months.”

Here’s more from Savills:

Data centres garnered the highest share of about 34% in total private equity investments in Q3 2021. They have proven to be resilient despite the current pandemic in India. With the growing need for digital connectivity leading to a sharp rise in data usage, the demand for data centres, too, has soared. Improving technology infrastructure and increasing adoption of new technologies such as 5G, artificial intelligence, cloud computing, and Internet of Things are further pushing demand for this emerging asset class.

India witnessed its maiden investment by a global pension fund in life sciences R&D asset. Ivanhoé Cambridge and Lighthouse Canton jointly invested USD 100 million (INR 7.4 billion) in life sciences R&D facilities in Genome Valley, Hyderabad. India is an established pharma and life sciences innovation hub for global and domestic companies and the world’s largest vaccine manufacturing destination* characterised by a technically-sound talent pool and world-class R&D capabilities. We anticipate India to further cement its position in the global life sciences arena in the post-pandemic world, thereby presenting a lucrative opportunity for private equity investors focusing on life sciences R&D real estate.


Join Realestate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

But this is only due to the major sale of Sunworld Dynasty in Q3 2020.
Sales volume reached 1,387 in the first three quarters of 2021.
There are currently 315 hotels with 86,967 keys.
Supply will hit record highs of over 5m sqm this year, with more supply slated until 2023.
There were a total of eight hotel investment transactions during the quarter.
They are mostly in the CBD and CBD Fringe submarkets.
A record 6,000 seats in flex spaces were absorbed in Q3 2021 alone.
Blame it on supply chain disruptions and labour shortages amidst the pandemic.
Damaged land could help address the lack of developable land in Seoul’s Capital Area.
Tenants in Kowloon are favouring lease renewals over relocations.
Full-year investment turnover is predicted to grow by up to 20%.
Transactions already increased by a massive 131.4% y-o-y in the first nine months of 2021.