Private Equity (PE) flow into real estate is up 15 per cent to $2.6 billion during the first quarter (Q1) of calendar 2018, eclipsing the inflows in the first quarter of the last 11 years.

“The residential sector gained most of the inflows, as investors look to gain from government incentives in affordable housing,” said Anshul Jain, Country Head and Managing Director India, Cushman & Wakefield.

“The strong inflow level is testimony to the attractiveness of the Indian real estate market for institutional investors. Affordable housing projects continue to see interest from institutional investors, driven by strong end-user demand and government incentives for both developers and homebuyers,” he added.

Cushman & Wakefield foresee inflows into this segment to be on the rise over the next few years.

During the Q1, PE inflows into the residential sector more than doubled year-on-year to $1.32 billion, backed by a large platform transaction between Housing Development Financial Corporation (HDFC) and Abu Dhabi Investment Authority (ADIA). Mumbai accounted for approximately 19 per cent of the total deals in the residential sector.

Ashish R Puravankara, Managing Director, Puravankara, said: “The growth of the premium affordable housing segment has further expanded the market as buyers opt to buy homes that come with quality features, good amenities and, most importantly, within their budget.”

Also, companies like Brigade Enterprises have given importance to affordable housing. The company is currently developing about 20 million square feet across residential, office, retail and hotel segments.

MR Jaishankar, Chairman and Managing Director, Brigade Enterprises, said that “the company is to build about 12 million square feet in 2018-19 across the four segments including about 5 million square feet in the affordable housing segment.”

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