Private equity funding in realty sector declined 20% in Jan-Jun to USD 2.58 billion in India: Knight Frank

Private equity investment in the real estate sector dropped 20 per cent in January-June 2023 to USD 2.58 billion, according to property consultant Knight Frank India.

In its report 'Trends in Private Equity Investment in India - H1 2023', the consultant cited that the real estate sector in India received USD 2.6 billion in private equity (PE) investments across offices, warehousing, and residential sectors in the first half of 2023.

"This is down 20 per cent from H1 2022 as PE investors adopted a measured approach in H1 2023, resulting in a conservative shift in investment strategies," it added. Knight Frank expects a rebound in the second half of 2023.

"Overall, PE investments in the Indian real estate sector are estimated to touch USD 5.6 billion in 2023, a 5.3 per cent YoY (year-on-year) growth," the consultant said.

At 68 per cent share, the office sector accounted for the largest share of all PE investments, followed by warehousing at 21 per cent and residential at 11 per cent share.

The residential sector attracted USD 277 million in investments during H1 2023, while office assets USD 1,750 million and warehousing USD 555 million.

Mumbai received the highest investments accounting for 48 per cent, NCR stood second at 32 per cent, and Bengaluru at 13 per cent.

Nearly 75 per cent of investments came from Asian countries in H1 2023, in contrast to 86 per cent of investments received from Canada and the US in the first half of 2022.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.