Investment in real estate likely to revive in 2021
Private equity investment in the Indian real estate ...
A Savills India statement said that its estimates for private equity investment in the sector are based on factors like overall economic and infrastructure growth, growth in sectors such as manufacturing, logistics and e-commerce. Geopolitical scenario and policy enabling environment are also considered to be key determinants. As per the report, the warehousing and logistics segment has been among the most resilient asset classes in the ongoing pandemic. Warehouse leasing is expected to increase by 60 per cent in 2021 as compared to 2020, keeping investors riveted and on the lookout for investment opportunities.
Savills Research also expects private equity investors to assess an opportunity of around $330 million in the industrial and warehousing segment in 2021. This is approximately 17 per cent higher compared to the average annual investments during the period of 2016-2020. Anurag Mathur, CEO, Savills India said: “2020 has been a watershed year for businesses and industries across the globe. Indian economy has weathered this unprecedented crisis fairly well, which is indicative of its strong inherent fundamentals.”
“Going forward, policy steadfastness and implementation will hold the key to revival of investment. In our view, the investors will proceed with caution in early days, but 2021 is likely to experience a fair amount of PE investment owing to inherent strengths and potential of alternate asset classes in real estate,” he said.