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PE investment in NCR real estate jumped 58% in first nine months of FY23: Report


New Delhi: Private equity investors invested $1,215 million in property in the National Capital Region or NCR during the first nine months of fiscal 2023, compared with $771 million in the same period in fiscal year 2023. prior to that, up 58%, according to Anarock.

The report states that the Mumbai Metropolitan Region or MMR saw a drop in total capital inflows during the period from $574 million to $224 million.

Interestingly, Chennai, which holds just 1% market share in total PE inflows for the 9 months of FY22, has seen its market share grow to 8% in the 9 months of FY 2023. up to $268 million was invested in Chennai during the nine months of fiscal year 23, compared with $37 million for the nine months of fiscal year 22.

Overall, Indian real estate attracted $3.4 billion in PE capital in nine months in fiscal 2023, compared with $3.3 billion in the same period in fiscal 2022 – an annual increase of $3. %.

“With the rise of the hybrid working model and corporations expanding into tier 2 cities to make it easier for them to work, demand and confidence in commercial spaces has increased again. “Confidence in the residential sector is also currently high and will remain flat on the back of continued strong sentiment about home ownership,” said Shobhit Agarwal, MD & CEO – ANAROCK Capitals.

“In the retail segment, PE investments are still down slightly but are expected to gain momentum as physical shopping levels return,” Agarwal said.

The top 10 deals alone accounted for 76% of total PE investment in the nine months of FY 2023, compared to 72% in the 9 months of FY 2022. The average transaction ticket size has grown from $82 million dollars for 9 months in fiscal year 22 to $91 million in 9 months in fiscal year 23.

According to the report, PE investors prefer stocks, which can be seen from the fact that its ratio continues to be at a steady 77%.

The commercial real estate sector has seen increased investment inflows through PE investments, capturing the highest market share of 55% in the 9 months of FY 2023 compared to 33% in the 9 months of FY 2023. main 2022. This may be because investors continue to favor Grade A office properties with quality tenants.

“As a result of the pandemic, demand in the housing sector has resulted in the sector accounting for the second highest share of 23% in the nine months to fiscal year 23. The residential property class has witnessed PE increased from $568 million in 9 months in FY22 to $772 million in 9 months in FY23,” the report said.

At $948 million, domestic investments grew to 61% of total PE inflows into Indian real estate in the first nine months of FY 2023, compared to $587 million in the 9 months of FY22. Foreign Investment foreign exchange dropped to 71% in the nine months of fiscal 2023 from 78% in the nine months of fiscal 2022.

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