PE inflows in realty down 22 pc in Apr-June qtr, says report
Investment inflows in Mumbai fell during this quarter at Rs 2,800 crore although the city still receives the highest investments observed among the major cities.
Private equity investment in real estate fell by 22 percent to Rs 10,080 crore during April-June quarter, even as the inflow in office segment rose by nearly 40 percent, according to property consultant Cushman & Wakefield.
The CREDAI-C&W report said that although PE inflows into real estate dipped 22 percent year-on-year (Y-O-Y) to Rs 10,080 crore during the second quarter, it was still a second highest investment in Q2 in the last 11 years. According to the report, the PE inflows in housing segment fell to Rs 1,510 crore from Rs 2,290 crore during the period under review. However, the inflows in the office segment, which is in demand from both domestic and global investors, rose to Rs 4,300 crore during the second quarter of 2018 from Rs 3,090 crore in the year-ago period.
"The surge in office investments was an expected trend, in line with our observations made in Q1 2018, during which there was a forecast of some marquee deals in the office sector by private equity majors," C&W India Country Head and MD Anshul Jain said.
As office space supply and demand continue to experience a robust increase, coupled with the emergence of co-working spaces in a phenomenal way, he said the investor confidence in the sector would continue to remain intact.
Retail also continues to grow strong, with declining mall vacancy rates constituting the heightened investor interest in this sector, Jain said.
Leading the investment volume among all cities with a share of 28 percent, Mumbai noted the quarter's largest transaction with Brookfield Asset Management acquiring Essar Group’s Equinox Business Park in Bandra Kurla Complex for Rs 2,400 crore.
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