PE inflow in real estate up 51% to Rs 24,680 cr: Cushman & Wakefield

Private equity investment in real estate rose 51 per cent year-on-year to Rs 24,680 crore in the first six months of this year, Cushman & Wakefield said on Monday. 

The private equity (PE) investment during April-June stood at Rs 15,850 crore (USD 1.92 billion), which was 63 per cent higher than the previous quarter and 60 per cent higher than the same period last year.

"H1-2023 (January-June) witnessed a cumulative inflow of close to Rs 24,680 crore (USD 2.99 billion) which is 51 per cent higher than H1-22, mainly driven by investment in the office segment and also increased investments in alternate segments like logistics & industrial and data centres," real estate consultant Cushman & Wakefield said in a statement.

Equity investment constituted for 87 per cent of the total inflows.

Somy Thomas, Managing Director, Valuations and Co Head, Capital Markets at Cushman & Wakefield, said, "Indian office markets are one of the most resilient investment classes in the real estate world with stable occupancies along with rental growth beating inflation.

"Retail asset classes are doing mostly double-digit NOI (Net Operating Income) growth on a YOY basis and considering the shortage of high-quality retail space, we expect rental growth to continue in the near term," Thomas added.

The consultant said that the June quarter saw the listing of India's maiden retail REIT-- Nexus Select Trust.

"With a new office REIT (Real Estate Investment Trust) by a consortium of prominent asset owners, a total of 45 million square feet is expected to be added by the end of the year. NDR Warehousing, based in Delhi NCR is evaluating its maiden Rs 2,000 crore InvIT by listing its 19 million square feet portfolio across India," it added.