The country’s real estate sector attracted private equity investment of $ 2,308 million between January and September. Property consultant company Knight Frank India has said this in its latest research report. Of the total private equity investment in real estate, the largest segment has been in the office segment. There is an investment of $ 1,871 million in the office segment, which is an 81 percent stake. This is followed by warehousing with 10 per cent and residential at 9 per cent. There has been an investment of $ 221 in warehousing and $ 216 in fiscal.
Highest investment in Mumbai’s office segment
According to the report, the office market continues to be a priority for investors. The reason for this is the strong fundamentals of the Indian office market. Since 2011, the segment has collected $ 15.4 billion in equity investment. In these 10 years, Mumbai has got the largest share of office investment worth $ 5,015 million followed by the National Capital Region (NCR) with $ 2,010 billion. And has an investment of $ 2,010 million in Hyderabad.
Talking about investment in the warehousing sector, this sector has attracted investment of US $ 221. This is 86 percent less than the same period of last year on an annual basis. At that time, the investment stood at $ 1,538 million. The report said that the reason for this decline is that a large part of the capital, which is in the warehousing sector in India, is waiting to be spent for the last three years. However, global investors are expecting the warehousing sector to come out strongly from this crisis as demand from the e-commerce segment has improved due to the lockdown. Investors are investing in warehousing assets.
Reduced investment in residential sector
During the period January to September 2020, there have been only three deals in the residential sector, worth $ 216 million. This is 67 percent less on an annual basis. In comparison, there was an investment of $ 659 in the same period last year. For some years, housing prices have been stable and in some places have come down. However, input costs for developers have not decreased at the same level and have increased for many things including land prices, labor costs, cement and steel prices, construction charges and approval costs.
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