More than half of private equity investment in commercial real estate was in the NCR, report says

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  • NCR commercial real estate emerged as the top preferred PE as it saw investments of $992 million in the first half of FY23.
  • Demand in the residential sector remained healthy at $372 million in the first half of FY23, according to a Anarock report.
  • Need another bullet The share of investment from foreign investors remained at around 78% in H1FY23.

India Inc. is bringing its employees back to work and it has private equity investors excited about the prospects for commercial real estate, according to a report from a real estate services company Anarock Capital.

In the first half of FY23, private equity investment in space was $1,862 million. The average ticket size of an investment also increased from $75 million in the first half of FY22 to $121 million in the first half of FY23.

“Commercial real estate space is preferred by private equity investors. The investment share of commercial assets in the overall real estate pie has grown from 18% in the first half of FY22 to 67% in the first half of FY22. 23,” said Shobhit Agarwal, MD and CEO of Anarock Capital.

NCR beats India’s financial capital


Most of these investments were directed to NCR, which saw a 61% increase – in the first half of FY23, investments were $992 million – almost half of all investments in private equity in commercial real estate.

Chennai is the next private equity favorite with investments worth $257 million, followed by Bombay ($156 million), Hyderabad ($129 million), bangalore ($15 million) and Pune ($5 million).

Residential real estate demand remains strong after the pandemic


Demand in the residential sector remained strong at $372 million in the first half of FY23, making it the second most preferred among all asset classes.

“Post-pandemic demand and confidence in the commercial real estate sector has seen a significant recovery,” Agarwal said.

“Investor confidence in Indian real estate is steadily increasing thanks to India’s improving economy despite global headwinds and the continued strength of its real estate industry,” Anarock said.

Domestic investment increased by 45% and foreign investment increased by 36% of total inflows into Indian real estate in H1FY23 compared to H1FY22.

The share of investment from foreign investors held steady at around 78% in the first half of FY23, reflecting continued global confidence in India’s real estate sector, Anarock revealed.

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