PE Inflows in Indian Realty Shrink
The new business environment caused by the ongoing Covid-19 pandemic is expected to hit the pace of investments into Indian real estate this year across various segments including residential, retail and even hitherto favourite commercial assets.
Private equity inflows in 2020 is expected to be 45-50% lower from a year ago, expects property consultant Cushman & Wakefield. However, it also believes that this decline is likely to be a short-term blip as most funds will be realigning their capital allocation stack.
The new scenario emerging post Covid19 is likely to prompt institutional investors to focus on relatively defensive assets such as warehousing, logistics and data centres.