Private equity investment in real estate rose 24 per cent year-on-year to US$477 million (about Rs 3,500 crore) during the July-September 2021 period but fell by 45 per cent compared to the previous quarter, according to Savills India.

Private equity inflows into real estate were $385 million in the same period last year and about $900 million in the prior quarter.

In its latest report ‘India Investment Market Watch’, Savills India attributed the temporary slowdown in investment activity to delayed decision-making by investors in the face of the COVID-19 pandemic.

According to the report, data centers took the highest share of about 34 percent of total private equity investments in the third quarter of 2021.

“Data centers have proven to be resilient in the face of the impact of the current pandemic in India. With the growing need for digital connectivity leading to a sharp increase in data usage, the demand for data centers has also risen,” the report said.

The advisor said that investment inflows amounted to US$3.3 billion (Rs.23,300 crore) during the January-September 2021 period, which is half (49 per cent) of the total investment inflows witnessed by the sector in the whole of 2020.

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

“With the acceleration of the vaccine program we will see business confidence gain momentum. Despite the pandemic, 2021 continued to see some brand deals across the real estate sectors,” said Dewakar Rana, Managing Director of Capital Markets. India Savills.

The September quarter 2021 also saw India’s first investment by a global pension fund in life sciences research and development assets, with Ivanhoe Cambridge and Lighthouse Canton jointly investing $100 million (Rs 740 crore) in life sciences research and development facilities in Genome Valley, Hyder Abad.

Savills expects India to strengthen its position in the global life sciences space in a post-pandemic world, thus presenting a lucrative opportunity for private equity investors focused on real estate in life sciences research and development.

Savills Plc is a global real estate services company listed on the London Stock Exchange.

Savills India is a subsidiary of the Savills Plc group which is a professional international real estate advisory firm.

The company started in India in 2016, and employs more than 400 professionals.

Recently, real estate advisory firm JLL India came out with a report indicating that institutional investment (which includes private equity and other flows) in real estate increased 17 per cent year-on-year to US$721 million in the July-September 2021 period.

JLL data showed that during the January-September 2021 period, institutional investment rose to $2,977 million from $1,534 million in the same period last year.

The institutional flow of funds includes investments by family offices, foreign company groups, foreign banks, equity books, pension funds, private equity, real estate fund developers, foreign-funded non-bank financial firms, and sovereign wealth funds. It also includes major investors in real estate investment trusts (REITs).

(The title and image for this report may have been reworked only by the Business Standard team; the rest of the content is automatically generated from a shared feed.)

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