PE investment in realty jumps 16-fold in Jan-Mar at $3.2 billion

The investment stood at mere $199 million in Q1 of 2020 calendar year.

Private equity investment in real estate jumped over 16-fold in January-March 2021 to $3.24 billion as several deals spilled over from last year, according to Knight Frank.

The property consultant, in its report ‘Investments in Real Estate – Trends in PE Investments – Q1 2021’, said Indian real estate attracted private equity (debt and equity) investments of $3,241 million across 19 deals in Q1 2021.

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The investment stood at mere $199 million in Q1 of 2020 calendar year. “The strong momentum in Q1 2021 was predominantly driven by two major factors: a spill over of certain deals from 2020 and the rise in investor confidence due to the drop in Covid-19 infections during early parts of Q1 2021,” it said.

Explaining the investment trend in the real estate industry, Shishir Baijal, chairman and managing director of Knight Frank India, said office assets continue to be the preferred segment attracting over 70 per cent of PE investments in Q1 2021.

“While Q1 2021 has been an encouraging quarter for PE investments, however, the upward trajectory can be impacted by the rising second wave of Covid-19 infections in India which started in the month of April 2021,” he added.

The sustainability of revival in investor sentiments will therefore depend on how soon the second wave of infection subsides and the pace of vaccination, he said.