ANAROCK Capital’s Flux – 9M FY23 report reveals that PE players invested USD 1,215 million into NCR the first nine months of FY23, against USD 771 million in the corresponding period in the previous financial year. This was a 58 percent yearly jump in total PE inflows in the region.
The report finds that MMR witnessed a drop in total inflows during the period – from USD 574 million in 9 months of FY22 to USD 224 million in 9 million FY23. Investor focus has shifted visibly. Interestingly, Chennai, which accounted for a mere 1% share of total PE inflows in 9M FY22, saw its share rise to 8% in 9M FY23. As much as USD 268 million were invested in Chennai in 9M FY23, against USD 37 million in 9M FY22.
Overall, Indian real estate attracted USD 3.4 billion of PE funding in 9M FY23, against USD 3.3 billion in the corresponding period in FY22 – an annual increase of 3%.
The top 10 deals alone accounted for 76% of the total value of PE investments in 9M FY23, compared to 72% in 9M FY22. The average deal ticket size rose from USD 82 million in 9M FY22 to USD 91 million in 9M FY23.
Shobhit Agarwal, MD & CEO – ANAROCK Capitals, says: “With a rise in the hybrid work model and corporates expanding into tier 2 cities for their ease of working, demand and confidence in the commercial space has resurged. Confidence in the residential sector is also high currently, and will remain constant on the back of strong continued homeownership sentiment.”
“In the retail segment, PE investments have remained subdued but are expected to gain momentum with physical shopping levels returning,” he says. “Thanks to the buoyant manufacturing sector, favourable government policies and the booming 3PL sector, high momentum is expected in the Industrial & Logistics sector in the future.”
