Real Estate Witnessed Private Equity Investments of $4,068 Million In 2020

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The country attracted private equity investments to the tune of $ 38,149 million in the year 2020. Of the total PE investment, the real estate sector claimed 11 per cent share in 2020 with $ 4,068 million, closing 21 deals during the year. The share of office and warehousing PE investments have jumped remarkably over the last decade from 24 per cent in 2011 to 62 per cent in 2020 and 6 per cent to 24 per cent during the same period respectively.

“Despite a slowdown in overall PE investment, we continue to witness a strong investor appetite for rent yielding office assets. Knight Frank believes that with more clarity on the pandemic resolution and sense on structural changes, the deal activity is expected to pick up further in 2021,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India

Since 2011, the segment has garnered USD 16,213 mn of equity investments, and during 2020, the segment transacted seven deals amounting to USD 2,509 million. Around 21.8 mn sq ft of the office assets were transacted in 2020. The PE investments through equity route in this space were down 19% YoY in 2020 compared to USD 3,096 mn during the same period last year.

In terms of investor origin split, The United States of America leads the chart with USD 6,709 mn investment claiming 26 deals since 2011, followed by Singapore with USD 5,225 mn and Canada with USD 2,082 mn.

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