Private equity inflows in realty up by 19% to $3.8 billion in 2019

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Private equity (PE) firms invested around $3.8 billion in real estate sector from January to September this year, up 19 per cent from $3.2 billion invested during the same period last year.

Of the total investment, $3.6 billion was equity funding - comprising nearly 95 per cent of the overall share - while the remaining five per cent was via structured debt, ANAROCK said. Foreign private equity funds continued to dominate the real estate investment scene with top investors being Blackstone, Hines, Ascendas, Brookefield etc.

Commercial real estate sector continued to attract the maximum PE investments, totalling close to $3 billion funds in the first three quarters of 2019 as compared to $2.1 billion during the same period last year, up by 43 per cent in a year. 

Residential segment, on the other hand, received $295 million funding this year as against $210 million last year, up by 40 per cent year-on-year. Retail segment attracted close to $260 million from January to September 2019 whereas last year it saw inflows of $355 million, a drop of 27 per cent in a year.

PE inflows in logistics & warehousing dropped by 27 per cent in 2019 and equalled nearly $200 million as against $275 million a year ago.

MMR attracted maximum PE funding in 2019, totalling around $1.59 billion. On yearly basis, the region saw total inflows increase by 3 per cent from $1.54 billion in first three quarters of 2018. Pune, on the other hand, saw total investments of $390 million between January and September 2019 as against $125 million in the same period of 2018, a rise of nearly 213 per cent.

PE funding in National Capital Region (NCR) continued to squeeze further in 2019 with investors pumping in merely $115 million in contrast to $150 mn from January to September in the year 2018.

Investments flow into Bengaluru rose by 17 per cent to $490 million in 2019 from $420 million in 2018.

Hyderabad, which attracted $790 million PE inflows in the first three quarters of 2018, saw overall PE funding decline by 76 per cent to $190 million in 2019. In entire 2018, the city has attracted total funds worth $1.1 billion, more of a one-hit wonder.

Chennai reported 44 per cent jump in investments folow to $230 million as against $160 million a year ago.

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