PE Players Invest Over $1.21 Bn In NCR Till December, 58% Year On Year Growth: Report

Advertisements

ANAROCK Capital’s Flux – 9M FY23 report reveals that private equity (PE) players invested $1,215 million into NCR (national capital region) the first nine months (9M) of FY23, against $771 million in the corresponding period in the previous financial year. This was a 58 per cent yearly jump in total PE inflows in the region.

The report finds that MMR witnessed a drop in total inflows during the period – from $574 million in 9M FY22 to $224 million in 9M FY23. Investor focus has shifted visibly. Interestingly, Chennai, which accounted for a mere 1 per cent share of total PE inflows in 9M FY22, saw its share rise to 8 per cent in 9M FY23. As much as $268 million were invested in Chennai in 9M FY23, against $37 million in 9M FY22.

Overall, Indian real estate attracted $3.4 billion of PE funding in 9M FY23, against $3.3 billion in the corresponding period in FY22 – an annual increase of 3 per cent. The top 10 deals alone accounted for 76 per cent of the total value of PE investments in 9M FY23, compared to 72 per cent in 9M FY22. The average deal ticket size rose from $82 million in 9M FY22 to $91 million in 9M FY23.

The commercial real estate sector has witnessed increased capital inflows via PE investments, accounting for the highest market share of 55 per cent in 9M FY23 as compared to 33 per cent in 9M FY22. This can be attributed to investors’ continued preference for Grade A office assets with quality tenants. As an aftermath of pandemic, demand in residential sector has resulted in it drawing the second-highest share of 23 per cent in 9M FY23. The residential asset class has seen PE growing from $568 million in 9M FY22 to $772 million in 9M FY23.

At $948 million, domestic investments increased to 61 per cent of the total PE capital inflows in Indian real estate in 9M FY23, compared to $587 million in 9M FY22. Foreign investments have dropped to 71 per cent in 9M FY23 compared to 78 per cent in 9M FY22.



Categories: Other News

Tags: , , ,

Leave a Reply Cancel reply

%%footer%%