Private equity investment inflows into the Indian actual estate sector stood at $477 million (Rs 35 billion) throughout Q3 2021, marking a 45% QoQ decline, according to the most current report by Savills India, a international home consultancy firm.
The investment inflow amounted to $3.3 billion (Rs 233 billion) throughout January by way of September 2021, equivalent to just about half (49%) of the investment inflows that the sector witnessed in whole 2020. This short-term slowdown in investment activity can be attributed to delayed choice-producing by investors in the face of the pandemic.
As per the report, information centres garnered the highest share of about 34% in total private equity investments in Q3 2021. Data centres have verified to be resilient to the influence of the existing pandemic in India. With the expanding require for digital connectivity major to a sharp rise in information usage, the demand for information centres, as well, has soared.
India PE Investment in Real Estate (in USD bn)
“As the vaccine programme has picked up speed, we will see business confidence gaining momentum. In spite of the pandemic, the year 2021 has continued to witness some marque deals across real estate segments,” stated Diwakar Rana, Managing Director, Capital Markets, Savills India.
Q3 2021 also witnessed India’s maiden investment by a international pension fund in life science R&D asset exactly where Ivanhoé Cambridge and Lighthouse Canton jointly invested $one hundred million (Rs 7.4 billion) in life science R&D facilities in Genome Valley, Hyderabad. Savills India anticipates India to additional cement its position in the international life science arena in the post-pandemic world, thereby presenting a profitable chance for private equity investors focusing on life science R&D actual estate.