Real Estate: Indian Real Estate 2019-Big Deals Largely Concluded by Foreign PE Investors

January 15, 2020 | Real Estate, Special Reports
https://dailyalts.com/wp-content/uploads/2020/01/The_tallest_buildingsmumbai-TN548.jpg

Foreign private equity invested US$5.03 billion in Indian real estate in 2019.

Compared to 2018, when foreign PE investors poured in US$ 5.13 billion into Indian real estate, investment fell by 2% in 2019.

However, the investment in 2019 was nearly 80% higher than the US$ 2.8 billion brought in during 2015, says a report by Anarock Capital.

Indian real estate: Top pick is commercial

Foreign PE investors clearly have a growing preference for commercial property. The share of commercial property in the total annual PE investment more than doubled from 32% in 2015 to 66% in 2019. However, compared to 2018, the share of commercial property fell by 8%.

Foreign PE investments: Favored territories in India

There was a marked preference for the NCR region (+333% in 2019 over 2018) and Pune (+213%). However, Hyderabad (-61%) and Chennai (-45%) lost some momentum during 2019. On the other hand, Kolkata remained flat.

Real estate sector trends

Sector-wise trends compared in 2019 and 2018 as follows:

Sector 2019 % share in total PE 2018 % share in total PE
Commercial 66 74
Retail 19 7
Residential 8 5
Logistics & Warehousing 4 8
Multiple asset classes 3 6

Domestic versus foreign investing

The foreign component in private equity investments in Indian real estate was 55% and 66% respectively, in 2019 and 2018.

Compared to this, domestic investment was 8% and 25%, respectively.

However, interestingly, joint (foreign+local) investments grew sharply from 6% in 2018 to 37% in 2019.

Indian real estate: Outlook for 2020

The sharp bump up seen in retail property investments in 2019 is likely to continue in 2020. Further, Government efforts to remove the logjam in stalled residential projects through a distressed fund may bear fruit – 2020 to see many last-mile funding deals in residential.

Spurred by the success of India’s first REIT, there may be many more such launches. Anarock expects over US$25 billion of new REITs over the next three years.

(This is Part II of the two-part article on Indian real estate based on the Anarock report)

Related Story:   PwC: Takeaways from the Real Estate 2020 Outlook 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/10/marijuana-g4237088f5_640.jpg
FinTech: AeroPay And Jane Tie-Up To Offer Online Payments For Cannabis
October 15, 2021     FinTech, News

AeroPay and Jane Technologies announced Thursday a partnership to enable online payments via AeroPay across 36 U.S. state markets where cannabis is legal. More than 2,100 dispensaries and 300 companies…

https://dailyalts.com/wp-content/uploads/2021/10/bitcoin-81652-md.jpg
Digital Assets: BoE Official Likens Crypto To Subprime, Warns Of 2008-Like Crash
October 15, 2021     Digital Assets, News, Regulations

In a speech on Wednesday, Jon Cunliffe of the Bank of England called for tough regulations on cryptocurrencies, drawing a parallel between the $1.2 trillion subprime mortgage market in 2008…

https://dailyalts.com/wp-content/uploads/2021/10/nexon-10000-vehicle-big.jpg
Venture Capital: TPG Rise Climate And ADQ To Invest $1B In Indian Group Tatas’ EV Unit
October 15, 2021     ESG and Sustainability, News, Venture Capital

Tata Motors (NSE: TATAMOTORS), the automobile company of the Tatas, the Indian salt-to-airlines business conglomerate, will receive an investment of approximately $1 billion from TPG’s Rise Climate Fund and Abu…

https://dailyalts.com/wp-content/uploads/2021/10/BTC-Price-Chart-0427pm.jpg
Alternative Investments/Digital: Bitcoin Spikes In Anticipation Of SEC’s Clearance Of Bitcoin ETF
October 15, 2021     Alternative Investments, Digital Assets, News

Bitcoin, the leading cryptocurrency, is within handshaking distance of its April all-time high of $64,895 after spiking over the last 24 hours on rising market expectations of an imminent SEC…