Graphically Speaking

Down but not out

A sluggish realty market has not deterred private equity investors from pumping money into the sector

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Published 8 years ago on May 25, 2016 1 minute Read

After a brief lull, private equity investments rose across real estate categories, according to a report published by global real estate consultancy, Cushman and Wakefield. Overall, private equity investments grew by 40% in Q1 2016 to Rs.3,840 crore. In fact, the residential sector saw the most activity in the quarter, garnering over 48% of the total investment (about Rs.1,870 crore). The total number of deals closed during the quarter increased 13% and average deal size rose 23% to Rs.2.3 billion. Interestingly, the retail sector, also caught the fancy of foreign funds keen on diversifying their investment portfolios. On the other hand, the commercial office sector recorded a total investment of Rs.470 crore as opposed to nil in the same quarter last year. But what is pertinent to note is that despite flagging sales, Mumbai garnered over 44% of total PE investments in Q1CY16.  Hyderabad was next with Rs.720 crore, followed by Delhi-NCR, which saw investments of Rs.480 crore. Given that the financial capital continues to be a recipient of investor flows, it is unlikely that the developers blink anytime soon.