93% yoy dip in pvt equity flows in realty in 2020

Knight Frank India data showed that flow of private equity and institutional capital into India’s property sector declined 93% yoy in the first five months of this year. With merely 5 deals being concluded in the past 5 months, funds inflow into the sector declined to US$ 238 million. In contrast, 49 deals worth US$ 6.5 billion were sealed in the same period in 2019.

“The recall of undeployed capital by sponsors, emergence of attractive opportunities globally, increase in risk premiums, contraction in Indian GDP and Covid related uncertainties would cast their shadow on investor sentiment and we expect investor activity to be subdued in 2020,” stated Shishir Baijal, CMD, Knight Frank India.

He added that although India continues to remain an attractive destination globally, the prevailing business uncertainty and any recession anticipated in the upcoming quarters of 2020 will curtail overall demand.