2023-05-10-莱坊-Investments_in_Real_Estate_Q1_2022_16页_1mb

Private Equity Investments in India's Real Estate (Q1 2022)

Data Centres

• Investment surged 259% from 2016 (USD 616 Mn) to 2021 (USD 2.2 Bn).
• Foreign investors dominated (approx. 96-97%).
• Metro cities (Mumbai, Bengaluru, Delhi) attracted most investments.
• Drivers: Digital transformation, 5G rollout, data protection policies, OTT growth.

Office Segment

• Remained the top investment choice in 2021 (46% share).
• Bengaluru and Hyderabad were key cities.
• Shift from under-construction to ready-to-move assets.
• Focus on Grade A spaces due to post-pandemic demand.

Residential Segment

• Experienced a strong comeback in 2021 (19% share), up 52% YoY.
• Driven by renewed interest in home ownership and changing consumer habits.
• Bengaluru was the top city.

Retail Segment

• Investments jumped 271% YoY in 2021 (USD 817 Mn).
• Bengaluru and Mumbai were the top cities.
• Large deals by GIC, Canada Pension Plan, and Abu Dhabi Investment Authority.

Warehousing Segment

• Investment increased 55% YoY in 2021 (USD 1.3 Bn).
• Driven by logistics growth, automation, and e-commerce demand.
• Greenfield investments favored due to land acquisition timelines.

Overall Trends (Q1 2022)

• Total PE investments in real estate fell 68.3% YoY to USD 1.1 Bn in Q1 2022 (due to Omicron and global tensions).
• Office and warehousing remain preferred segments.
• Future outlook: 2022 projected to see USD 6.9 Bn in investments (11% YoY growth).

Key Drivers

• Infrastructure Status: Likely to boost funding accessibility for data centres.
• Digital Economy: Growth in internet penetration and OTT markets (7-9% of media sector).
• Post-Pandemic Recovery: Renewed focus on residential, office, and logistics spaces.

Investor Insights

• Foreign investors (non-Indian funds) dominated (approx. 97%).
• Debt-to-equity ratio shifted slightly towards equity in 2021.

For detailed charts and city-specific data, refer to the full report.