The retail sector was one of the worst affected due to COVID-19 which in-turn impacted private equity (PE) inflows in 2020; major deals got pushed to 2021.

The enactment of the Insolvency and Bankruptcy Code in 2016, (IBC) along with RERA ushered in a new era of regulation for the Indian real estate sector.

High-intensity focus on making India a global manufacturing hub has caused warehousing clusters to expand rapidly beyond the top cities and into tier 2 and 3 cities, reveals ‘Indian Industrial & Logistics – Gearing Up a Global Manufacturing Hub’ – a joint report by US-based Binswanger Commercial Real Estate Services and ANAROCK Group.

The massive digital push initiated by the COVID-19 pandemic has been lucrative for data centres, which can still deliver an annual rental yield of 10-14%.

Due to the COVID-19 and subsequent lockdowns across the country, the RBI allowed banks and other lending institutions a three-month loan moratorium on EMIs from March to May 2020.

US-based PE players top investors in Indian real estate; pumped in ~USD 5.7 bn between 2015-2019 Top Indian cities on their radar include Mumbai, Bangalore, Hyderabad, Pune, & Chennai among others Of total USD 5 bn PE inflows in Indian realty in 2019, US firms accounted for significant 36% share (or ~ USD 1.8 bn) Since 2016, Indian real estate saw Y-o-Y rise in PE inflows by US PE funds – from USD 526 million in 2016 to over USD 1.8 bn in 2019 With US becoming the new epicentre of COVID-19, PE funds could hold on to their India investment plans Some cash-rich players could scout for good bargains amid the carnage Major US-based private equity players include Blackstone, Hines, Warburg Pincus, Goldman Sachs etc.

Over 62% of the total loan advances ($93 bn) to Indian real estate by banks and NBFCs/HFCs is currently completely stress-free, reveals a study by ANAROCK Capital.

In 10 years (2005-2014), foreign PE investments in Indian real estate were USD 9 bn; last 5 years alone saw 84% surge. Singapore-based funds kick-started the Indian real estate investment spree, quickly followed by funds from the US and Europe. Post-2008, most foreign funds withdrew from India due to limited exit opportunities; in 6 years (2009-2014) only USD 3.4 bn came into Indian real estate - most in 2014. Momentum restarted from 2014; 2015-2019 saw USD 16.6 bn of foreign PE investments.