PE investors infuse $3.4 bn into realty

Hyderabad: Overall, Indian real estate attracted $3.4 billion of private equity (PE) funding in first nine months (9M) of financial year 2022-23, with an annual increase of 3 per cent against $3.3 billion in the corresponding period in FY22, says a report by property consultant Anarock Group. The pandemic was no deterrent for the NCR real estate market, which remained vibrant and performed remarkably well in 2022. The region witnessed more interest from private equity players than its counterpart realty hotspot MMR, it said. Anarock Capital's Flux report reveals that PE players invested $1,215 million into NCR the first nine months (9M) of FY23, against $771 million in the corresponding period in the previous financial year. This was a 58 per cent yearly jump in total PE inflows in the region. The report finds that MMR witnessed a drop in total inflows during the period – from $574 million in 9M FY22 to $224 million in 9M FY23. Investor focus has shifted visibly. Interestingly, Chennai, which accounted for a mere 1 per cent share of total PE inflows in 9M FY22, saw its share rise to 8 per cent in 9M FY23. As much as $268 million were invested in Chennai in 9M FY23, against $37 million in 9M FY22.

The top 10 deals alone accounted for 76 per cent of the total value of PE investments in 9M FY23, compared to 72 per cent in 9M FY22. The average deal ticket size rose from $82 million in 9M FY22 to $91 million in 9M FY23.