Fund inflow into shopping malls, commercial offices at 5-year high; this city received highest funds

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Published: February 11, 2020 3:58 PM

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.

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. 

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.

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“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.

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