Cushman & Wakefield reported that private equity investment in real estate surged by 51 percent compared to the previous year, reaching Rs 24,680 crore during the initial half of this year. This information was disclosed on Monday.
In the period of April-June, private equity (PE) investments amounted to Rs 15,850 crore (equivalent to USD 1.92 billion). This marked a 63 percent increase compared to the preceding quarter and a 60 percent rise from the corresponding period in the previous year.
Cushman & Wakefield, a real estate consulting firm, stated that the first half of 2023 (January-June) saw a total influx of nearly Rs 24,680 crore (equivalent to USD 2.99 billion). This reflected a 51 percent surge compared to the first half of 2022. The increase was primarily attributed to investments in the office sector and a notable rise in investments in other sectors such as logistics & industrial and data centers.
A significant portion of the total inflows, amounting to 87 percent, was contributed by equity investments.
Commenting on the matter, Somy Thomas, who serves as the Managing Director for Valuations and Co-Head of Capital Markets at Cushman & Wakefield, expressed that the Indian office markets stand out as remarkably robust within the real estate realm. This is attributed to their consistent occupancies, coupled with rental growth that surpasses inflation rates.
Furthermore, Thomas emphasized that retail asset sectors are primarily attaining double-digit growth in Net Operating Income (NOI) on a year-over-year basis. Given the scarcity of top-notch retail spaces, he anticipates that the trend of rental growth will persist in the foreseeable future.
According to the consultant, the retail real estate investment trust (REIT) landscape witnessed a significant development in the June quarter with the introduction of India's inaugural retail REIT, known as Nexus Select Trust.
Anticipating the establishment of a fresh office Real Estate Investment Trust (REIT) through collaboration among notable asset owners, a cumulative addition of 45 million square feet is projected by year-end. Furthermore, NDR Warehousing, headquartered in Delhi NCR, is in the process of assessing its inaugural Rs 2,000 crore Infrastructure Investment Trust (InvIT). This initiative involves listing its extensive portfolio of 19 million square feet across various locations in India.
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