Commercial deals rule as PE flows into realty rise 19% in Jan-Sept: Anarock

Private equity investments in the domestic real estate sector rose by 19 per cent to $3.8 billion during January-September 2019, mostly in commercial properties, according to Anarock.

Private equity investments were over $3.2 billion in the year ago period, the consultant said in a statement.

Commercial real estate received close to $3 billion funds in the first three quarters of 2019 as against $2.1 billion in the corresponding period of the previous year.

Residential segment, on the other hand, received $295 million funding this year as against $210 million last year, thus seeing nearly 40 per cent gain.

According to Anarock data, retail segment attracted close to $260 million during January-September 2019 as against $355 million in the year-ago period.

Logistics and warehousing witnessed 27 per cent decline in total PE inflows in 2019 at nearly $200 million as against $275 million earlier.

Among cities, Mumbai Metropolitan Region (MMR) witnessed maximum inflows at $1.59 billion till September this year, up 3 per cent from the same period of 2018.

Bengaluru witnessed nearly 17 per cent gain from $420 million to nearly $490 million till September.

Pune saw huge jump in investments — from $125 million in 2018 to nearly $390 million in 2019.

However, Hyderabad witnessed 76 per cent decline — from over $790 million last year to just $190 million in 2019.

Chennai saw investments of nearly $230 million as against $160 million a year ago.

PE funding in NCR dropped to $115 million from $150 million in January- September period of 2018.

As much as $3.6 billion was equity funding — comprising nearly 95 per cent of overall share — while the remaining 5 per cent was via structured debt.

Foreign private equity funds continued to dominate the real estate investment, with Blackstone, Hines, Ascendas, Brookefield being major players.