PE investments see sees 45 pc decline, says Savills report

Private equity investment inflows into the real estate sector stood at $477 million (Rs 35 billion) during Q3 2021 marking a 45 per cent Q-o-Q decline, according to a latest report by Savills India.

The investment inflow amounted to $3.3 billion (Rs 233 billion) during January through September 2021, equivalent to almost half (49 pc) of the investment inflows that the sector witnessed in entire 2020. This temporary slowdown in investment activity can be attributed to delayed decision-making by investors in the face of the pandemic.

As per the report, data centres garnered the highest share of about 34 per cent in total private equity investments in Q3 2021. Data centres have proven to be resilient to the impact of the current pandemic in India. With the growing need for digital connectivity leading to a sharp rise in data usage, the demand for data centres, too, has soared.

“As the vaccine programme has picked up speed, we will see business confidence gaining momentum. In spite of the pandemic, the year 2021 has continued to witness some marque deals across real estate segments” said Diwakar Rana, Managing Director, Capital Markets, Savills India.

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