Private equity investments fall in residential real estate: Report

Private equity investments have been consistently falling in the residential real estate, shows the data by Venture Intelligence. The investments have fallen from $3.09 billion in the calender year 2015 to $1.47 billion in 2018. However, a closer look at the segment’s break-up shows the affordable housing is witnessing an uptick in investments, growing at a whopping 407 per cent in 2017 and 107 per cent in 2018 year-on-year (YoY). After falling 83 per cent in 2016 to $83 million from $502 million in 2015, investments in the affordable housing have only risen to $419 million in 2017 and $868 million in 2018.
 

On the other hand, investments in the luxury segment fell by 71 per cent to $138 million in 2016 and rose by 112 per cent to $292 million in 2017, only to fall again by 99 per cent to $3 million in 2018. However, the investor interest rose in the commercial real estate, leading to a consistent YoY growth in 2016 by 75 per cent ($2.08 billion) to 10 per cent ($4.03 billion) in 2018. This growth in the sector was led by the co-working space, which grew by a 578 per cent in 2017 and 108 per cent in 2018. Apart from this, the investments in other commercial projects and malls also registered a decent growth. In terms of geography, Mumbai continues to lead in investments in affordable and luxury housing, apart from other commercial projects. Chandigarh led the pack for attracting investments in malls, while Delhi attracted the most investments in the co-working space. Interestingly, barring malls, Bangalore was the second-best city or region to attract investments in almost all segments, including affordable and luxury housing, other commercial and residential projects, as well as co-working space.