Private equity investment inflows into the Indian real estate sector amounted to USD 218 million (INR 16 billion) during Q4 2021, a decline of 54% QOQ. The investment inflow for 2021 was recorded as USD 3.4 billion (INR 250 billion), an annual decline of 48%.

The temporary slowdown in investment activity can be attributed to the cautious approach of investors, owing to pandemic-related unpredictability during the year as well as the impending threat of a third wave. Interestingly, foreign investors dominated the investment activity garnering 87% share in total PE investments, as investments by domestic funds remained relatively muted.

Savills India’s India Investment Market Watch – Year-End 2021 captures the latest trends in PE investment in real estate and anticipates investor confidence to recover on the back of improvement in economic performance, creating investment opportunities across the office, residential, and industrial segments, among others, in 2022.