Even as consumer spending remains muted, the inflow of the private equity funds into the Indian retail touched a fresh high last year in all five years since 2015-19, a report said.
Even as consumer spending remains muted, the inflow of the private equity funds into the Indian retail touched a fresh high last year in all five years since 2015-19, a report said. In 2019, the PE inflows touched $970 million, the report by ANAROCK Capital said. The given amount totals 19 per cent of the $5 billion in the overall Indian real estate, the report also said. Delhi-NCR received the maximum PE inflows of about $610 million, a 63 per cent share of the total retail funds into Indian realty during this period.
“Back in 2018, retail inflows stood at a mere USD 355 mn, comprising just 7% share of the total PE funds. In the previous five years, after 2019, year 2017 saw the second-highest PE inflows in retail at USD 890 mn. Interestingly, in 2019, Delhi-NCR received the maximum PE inflows of about USD 610 mn – a massive 63% share of the total retail funds into Indian realty during this period”, Shobhit Agarwal, MD & CEO, ANAROCK Capital said. The commercial offices attracted the highest investment, followed by the retail sector in 2019, Shobhit Agarwal also said.
“Investors are betting big on selected Grade A mall projects which have a high scope of business profitability. Despite the consumption slump, many malls are doing excellent business today – and investors are keenly vying for such projects”, Shobhit Agarwal added.
Meanwhile, the Indian economy is seeing a slowdown for some time now on account of both domestic and global factors. Finance Minister Nirmala Sitharaman has announced a slew of fresh measures in the latest budget. Even the RBI has come up with measures to boost growth in the retail sector in its last bi-monthly monetary policy.