Realty institutional investments touch $4 bn in 2018
Indian real estate has attracted over $4-billion investments from institutional investors in the year 2018 so far. Average deal size for these investments also crossed $150 million mark, the highest in the last five years, showed data from KPMG India.
Institutional funding has increasingly become a prominent financing medium, particularly focusing on the commercial real estate sector that has attracted over 60% of investments.
In addition to commercial real estate, warehousing realty is also turning an attractive avenue owing to supply chain efficiencies, cost savings through hub and spoke structure, and strong growth momentum being exhibited by sectors such as e-commerce, retail, FMCG and automotive.
Private equity investments into real estate sector during the first half of the year has already crossed more than 60% of such investments witnessed in the entire 2017. “The real estate sector in India has now entered a revitalisation phase and teething problems posed by various regulatory reforms have started settling in,” said Neeraj Bansal, Partner and Head – ASEAN corridor and Building, Construction and Real Estate, KPMG in India.