Despite global headwinds, Indian real estate sector records private equity investments of USD 5.1 bn in 2022: Knight Frank India
Knight Frank India, a leading international property consultancy, in its latest research report – ‘Investments in Real Estate; Trends in Private Equity Investments in India – 2022’ noted that the Indian real estate sector recorded PE investments amounting to USD 5,134 mn (USD 5.1 bn) through 29 deals across office, warehousing, residential and retail sectors in 2022. On an annual comparative, PE investments witnessed a decline of 17% YoY from USD 6.2 bn registered in 2021. Due to the rising inflation, higher interest rates, and geopolitical unrest, investors turned more cautious in 2022, which resulted in a decline in PE investments in India. Office sector continued to remain the favoured asset class constituting 45% of the total PE investments during 2022. The share of warehousing segment stood at 37% second highest after office. The share of residential and retail in the total investment pie stood at (12%) and (6%) respectively during 2022. Warehousing asset class observed robust growth of 45% YoY with an investment of USD 1.9 bn in 2022 compared to USD 1.3 bn in 2021. Going forward in 2023, as global headwinds are likely to abate by mid-2023, the capital investment environment is expected to improve.
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