PE investment in real estate has received Rs 39,182 cr in the first 3 quarters of 2019.

The interest of private equity firms in Indian real estate continues undiminished, with investment in the sector rising to Rs 39,182 crore in the first three quarters of 2019, up 19% from the previous year. They have infused over 83.5% of these funds as equity capital, which reflects an appetite for Indian real estate industry.

Private equity investments have risen in comparable YoY figures to 2019, following a sequential 13.9% fall. Private equity investment for the quarter ended September amounted to Rs 9,983 crore, as per data from Cushman & Wakefield India have shown. Residential sector investment flows have declined further, with a sequential 60% fall in this quarter.

The office segment was the preferred class of investments with expectations that further traction would take place in the near term. Institutional interest in rentable office assets continued to be supported by strong demand by the occupant. The leasing figures for 2018 for a new historic peak were set to surpass in 2019. Investors’ interest in this asset class is still weak with low vacancy and high demand in key office markets.

At quarterly rates, Mumbai had a 24% share of investments and Hyderabad and Pune held 9.3% and 9.0% of the fund’s inflows respectively. In fact, Hyderabad saw the largest quarterly rise across all cities with investment inflows rising by more than 5.6 times on a quarter. Multi-city investment (Maharashtra and Haryana) accounted for 47.3% of the fund inflows in the quarter’s, with two prominent office and industry transactions.

In order to make the listing bodies for new REIT listings, a good listing of Embassy-Blackstone system with scripts is important. Players like K Raheja-Blackstone will be next and other players like RMZ and Godrej Properties will likely be followed up with future listings.