PE Investment records 98% QoQ rise in Q1 2022; PE investments in Q1 2022 recorded at USD 1,180: Knight Frank India
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* Total PE investment in Real Estate at USD 50 Bn since 2011 3
* Real Estate estimated to receive private equity investments of USD 6,884 million (USD 6.8 Bn) in CY 2022
Mumbai : In the latest report global real estate consultancy Knight Frank India noted that the real estate sector in India received USD 1,180 Million (Mn) in Q1 2022 (Jan – Mar 2022) recording a growth of 98% quarter – on – quarter (QoQ) over Q4 2021 which had received PE investments of USD 597 Mn. In 2021 (calendar year) the total private equity investment (Equity + Debt) was recorded at USD 6,199 million recording a rise of 57% YoY over 2020. Since 2011 the real estate sector received cumulative PE investments of over USD50 Bn (50,809 million). Office remained the favoured asset class attracting USD 2,882 Mn in CY 2021 while in Q1 2022 the sector attracted USD 732 Mn. The real estate sector is expected to receive PE investments of an estimated USD 6.8 Bn (6,884 Mn) in the calendar year of 2022.
Office sector received 62% of the private equity investments in Q1 2022, followed by retail (21%), warehousing (10%) and residential (6%). From the perspective of annual numbers, the calendar year 2021 witnessed a surge of 57% to USD 6,199 million when compared to USD 3,945 million received in CY 2020. Office constituted 46% of the private equity investments in 2021, followed by warehousing (21%), residential (19%) and retail (13%). The number of deals went up from 20 in 2020 to 52 in 2021.
The way ahead: Outlook 2022
Knight Frank India estimates the capital markets to chart a growth of 11% YoY to USD 6,884 million in the CY 2022. In the backdrop of interest rate trajectory moving northwards and resilient economic outlook for the country, Knight Frank Research’s evaluation of the variables such as government investment, currency movement, inflation, interest rate, and office supply, which have been found to be largely correlated to PE investments in India, the report infers that the deal street of real estate investments is expected to remain robust in the year 2022.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, “While investors’ appetite remained strong across various real estate asset classes in 2021, escalating global tensions emanating from Russia-Ukraine war and the influence of omicron in the early part of the year were seen inhibiting investment. Moving forward, push for infrastructure spending will accelerate investments in the next 3 quarters of the year 2022 to levels witnessed prior to the pandemic with estimated investments touching USD 6.8 Bn.”
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