PE investment in real estate fell 26% from April to December 2023

According to Anarock Capital’s FLUX report, private equity (PE) investments in real estate declined by around 26% in the first nine months of fiscal 2024 as both foreign and domestic investors reported a decline in activity. recorded a decrease of %.

The company said global geopolitical uncertainty and the high interest rate environment kept foreign investor activity subdued throughout most of the quarter.

Shobhit Agarwal, MD and CEO of Anarock Capital, said, “Domestic alternative investment funds (AIFs) are seeing demand for high-cost capital in residential real estate bonds, their preferred asset class. “There has been a decline in activity levels,” he said.

“Strong housing pre-sales and accommodative stance by state-owned banks are leading to reduced demand for capital from more expensive AIFs,” he added.

Average ticket investment increased slightly from $91 million in FY2023 to $95 million in FY2024, according to the report.

“This is mainly due to Brookfield India Real Estate Trust REIT and Singapore sovereign wealth fund GIC jointly owning two commercial assets (one in Mumbai and the other in Gurugram, North Carolina). The acquisition of the company from Brookfield Asset Management at an enterprise value of $1.4 billion, the company said.

Agarwal said, “Investments by foreign investors increased to 86% in FY2024 to 9 million compared to 79% in FY2023. Correspondingly, domestic investments increased to 86% in FY2024. 9 million fell to 14% of the total capital inflows into Indian real estate in FY2017,” it added. The total amount was $360 million, compared to $717 million, which was $9 million in FY2023. ”