Real estate attracts $3.8 bn private equity from Jan-Sept 2019; 19% YoY rise

Giving a fresh ray of hope to Indian real estate, private equity funds have pumped in nearly $3.8 billion between January and September in 2019, reveals recent research by ANAROCK. Recording nearly 19 percent yearly gain, total inflows equalled over $3.2 billion in the corresponding period a year ago.

As much as $3.6 billion was equity funding - comprising nearly 95 percent overall share while the remaining 5 percent was via structured debt. Also, foreign private equity funds continued to dominate the real estate investment scene. Top investors included Blackstone, Hines, Ascendas, Brookefield, etc.

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Segment-wise break up:-
* Commercial real estate continued to attract maximum PE investments, totalling close to USD 3 bn funds in the first three quarters of 2019. In the corresponding period of 2018, total inflows within this segment equalled nearly USD 2.1 bn, thus rising by 43% in a year.

* Residential segment, on the other hand, received USD 295 mn funding this year as against USD 210 mn last year, thus seeing nearly 40% yearly gain.

* Retail segment attracted close to USD 260 mn funds since January till September 2019 whereas last year it saw inflows of USD 355 mn, a reduction of 27% in a year.

* Logistics & warehousing witnessed 27% decline in total PE inflows in 2019 and equalled nearly USD 200 mn as against USD 275 mn a year ago.