New Delhi: Mumbai unseated Hyderabad as showstopper in 2019 when to came to attracting highest private equity (PE) funding in the real estate industry. Mumbai got about USD 1.85 billion PE funding in 2019. In 2018, it was Hyderabad which was the showstopper in the country and had received USD 1.1 billion. In 2019, Hyderabad received only USD 440 million, according to a report by ANAROCK property consultants.
The total private equity (PE) inflow in the Indian real estate sector dropped 2 percent in 2019 as compared to 2018The Indian real estate industry got about USD 5 billion of PE funding in 2019.
Commercial real estate segment got over half of the PE funding at USD 3.3 billion in 2019. However, it got 13 percent lower funding as against 2018.
Residential property market saw PE funding to the tune of USD 395 million in 2019, sharply up from USD 265 million in 2018.
The retail sector got about USD 970 million in PE funds in 2019, as compared to USD 355 million in 2018.
Delhi and Mumbai accounted for around 53 percent of the overall PE inflow into the country. Delhi got about USD 845 million of PE funding.
“Delhi NCR once again emerged as a major hotbed for private equity activity in 2019. Besides office real estate, the retail sector helped NCR gain traction from both foreign and domestic funds,” said Shobhit Agarwal, MD & CEO – ANAROCK Capital.
Although warehousing and logistics sector presents excellent investment opportunity, the sector got only USD 200 million of PE, a drop of 50 percent as compared to 2018.
Mixed-use development witnessed PE inflow of 155 million in 2019 as against 310 million in 2018.
Bengaluru and Pune got PE funding of USD 615 million and USD 390 million respectively in 2019.
Chennai saw PE investment of just USD 370 million in 2019 where as it had received USD 675 million in 2018.