PE inflow in realty sector slips 5% to $1.9 billion in Apr-Jun: Report
New Delhi: Private equity investment in the real estate sector witnessed a 5% decline year-on-year in the April to June quarter, reaching $1.9 billion, due to the impact of high interest rates, according to a report by real estate consultant Anarock. The report titled ‘FLUX Q1 FY24 Market Monitor for Capital Flows in Indian Real Estate’ said foreign investors accounted for a significant share of 94% in the PE investments, while domestic funds contributed 6%.
Equity investments continued to dominate PE funding, constituting 94% of the total inflow. Anarock highlighted that “overall activity remained muted with headline numbers boosted by a large single deal with assets across locations." Shobhit Agarwal, managing director and CEO of Anarock Capital, said, “Excluding this deal, private equity activity remained subdued owing to a high interest rate environment and global uncertainties." PE transactions in the Indian real estate sector predominantly involved equity investments in office assets by foreign investors, he added.
The presence of a substantial deal between the consortium of GIC and Brookfield REIT with Brookfield AMC further influenced the distribution during the quarter. As per the data provided by Anarock, PE investment in real estate remained stable at $4.2 billion during the fiscal year 2022-23.
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