Private Equity Investment in real estate expected to reach $6.5 billion in 2019

2019 is expected to be a great year for the real estate sector in India as private equity investment is expected to be about $6.5 billion. Among all, the office investments will hold the largest share. Investors from all across the world are eying India’s flourishing real estate sector to make investments.

India has witnessed a splendid growth in the demand of commercial offices in the recent past. PE investors have invested about $56 bn in the RE market, with Indian players accounting for 57% of the total investment.

“The next decade will usher in new formats of workplaces, with landlords emerging as well as creators, where occupiers amalgamate workplaces and technology to increase productivity at workplaces,” feels Ritesh Sachdev, occupier services head and South India MD at Colliers International.

As per the report by RICS-colliers, office sector has held upper hand over the residential. The average annual demand for offices is expected to be over 50 million square ft. during 2019 and 2023 in the top cities of India. It has seen an 18% growth as compared to the preceding five-year term.

According to Nimish Gupta, the South Asian managing director of RICS, India’s real estate market is going through a phase of slowdown in which the residential sector has been affected the most. He also feels that although the current slowdown is not like the recession of 2008, its impact on the commercial real estate market will determine how deep its root have gone in the coming days.

The joint report of RICS and colliers also mentioned that a new supply projection of 160-180 million sq. ft. over 2019-2021 is further expected to support investor’s appetite, who are faced with a lack of investible assets in cities like Bengaluru and Hyderabad.

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