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Published on 10/03/2020 3:47:14 PM | Source: Knight Frank

Indian real estate receives private equity investment of USD 6.2 billion in 2019: Knight Frank Wealth Report 2020

Posted in Expert Views| #Expert Views #Wealth #Knight Frank

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Indian real estate receives private equity investment of USD 6.2 billion in 2019: Knight Frank Wealth Report 2020

24% Indian UHNWIs planning to buy residential property in 2020: Knight Frank Wealth Report 2020

Mumbai, March 5, 2020: According to Wealth Report 2020, Indian real estate sector received an equity investment of USD 6,221 million in 2019 with the office segment receiving a sizeable 47% of the total equity investment. Globally, private capital was responsible for $333bn of commercial real estate purchases in 2019, a 5% rise on the previous year.

The report also studies the attitude and preferences of ultra-wealthy for making property investments in 2020. Properties made 20% of the asset class for Indian ultra-high net-worth individuals (UHNWIs)

 

Equity investments in Indian real estate (in USD Million)

 

Residential

  • Property remains an attractive asset class for ultra-wealthy Indians, 24% are planning to buy a new home in 2020                                                                                                                                                
  • Preferred destinations outside India - 1) UK   2) US  3) Australia 4) Singapore 5) United Arab Emirates
  • 64% cited availability and quality of local “wellness” facilities as a selectioncriterion for purchasing a home  

 

Commercial

  • While 26% of India’s ultra-wealthy are looking to invest in commercial property within India; a further 15% are allocating capital for purchase outside the country of residence in the coming year
  • Preferred destinations outside India- 1) UK   2) US    3) UAE   4) Singapore 5) Australia

 

Neil Brookes, Head of Capital Markets, Asia Pacific,Knight Franksaid,“Despite uncertainty in 2020 around the impact of COVID-19, interest for assets remains high with significant capital chasing limited stock. While some private investors may delay their decisions due to the current climate, we expect secure assets that offer quality income streams to be in increasing demand.”

 

Sectors of Interest

Asia Pacific Capital Sources and Preferred Asset Classes

 

Q. In terms of their property investment decisions and the concept of wellness, which of the following statements apply?

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Indian Ultra- High- Net-Worth Individuals are making changes to their investment preferences, be it impacting their lifestyle or their future wealth. Through the Knight Frank AttitudesSurvey, we see the new aspect of ‘wellness’as a prominent criterion for investing in real estate assets. To protect and grow their investments,  office sector remains preferred asset class for private capital investors in India, along with healthcare, and education in second and third place, as investors continue pivot to alternative asset classes in the hunt for yield, return and diversification.”

 

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