Investment In Real-estate Sector Grew To 24 Percent In 3 Months

Investment in real-estate sector Grew To 24 percent in 3 months, Returning days of the real-estate sector: Sevilles India.

Private equity investment in the real estate sector grew by 24 percent year-on-year to $ 477 million (about Rs 3,500 crore) in the second quarter of the current financial year, July-September.

However, it is 45 percent less than the previous quarter (April-June 2021). Savills India has given this information in one of its reports.

Private investment inflows into real estate stood at $385 million in the corresponding quarter of 2020-21 a year ago and around $900 million in the previous quarter (April-June 2021).

Sevilles India, in its new report ‘India Investment Market Watch’, has attributed a temporary slowdown in investment activity to the delay in decision making by investors due to the COVID-19 pandemic.

Investment in the real-estate sector: According to the report, in the third quarter of the calendar year 2021, data centers accounted for the highest share of about 34 percent of total private equity investments.

It said, “Data centers in India have proved to be strong in terms of the impact of the current pandemic.”

“With the growing need for digital connectivity, there has been a sharp increase in Internet usage, the demand for data centers has also increased.”

The property advisory firm said that the investment inflows during January-September 2021 were $3.3 billion (Rs 23,300 crore), which is almost half (49 percent) of the total investment inflows recorded in the sector throughout 2020.

In the calendar year, private equity investment in real estate was $6.6 billion as compared to $6.7 billion in 2019, $6 billion in 2018, $7.7 billion in 2017, and $5.7 billion in the 2016 calendar year.

Diwakar Rana, Managing Director (Capital Markets), Sevilles India said, “Business confidence has increased as the vaccination program intensifies. Despite the pandemic, some significant deals are happening in the real estate sector in 2021.”