PE investments in realty dip 25% in 2022 on inflation, interest rate spike

In terms of average transaction size, the sector saw average deals of $191 million in 9M 2022, up 53% over $125 mn in the same period in 2021

Rising inflation, higher interest rates, and geopolitical unrest led to a spike in volatility and a slowdown in private equity (PE) transactions in 2022. The Indian real estate sector received PE investments amounting to $4.2 billion across the office, warehousing, residential and retail sectors in the first nine months (9M) of 2022, according to Knight frank’s latest report.

As most of the segments observed a drop in investments, PE investments declined (YoY) by 25 per cent from $5.6 billion registered in the first nine months of 2021.

In terms of average transaction size, the sector saw average deals of $191