PE investments in real estate declines in FY18

Private equity (PE) investments into the Indian real estate sector declined by 19 per cent YoY in FY18 claimed a report by Knight Frank, a global real estate consultancy.

The report said that the decline in PE investment could reflect turbulence in the real estate sector. However, the report also added that going by the investment numbers for the last few years, excluding the major brownfield investments worth more than US$500 million, the investments have been on an increasing trend since 2014 and the strong momentum which was observed in FY17 has sustained in FY18.

Knight Frank also added that the structural reforms brought by the government over the last 2-3 years have helped the sector to move towards a relatively transparent environment which has attracted a significant number of organised players.

The report further added that among the asset classes, residential sector has been under pressure for the last 3-4 years, while commercial real estate has been performing well.