Hyderabad attracts Rs 2,250-crore real estate investments in H1 2021
Hyderabad continues to attract private equity investments in real estate and is able to maintain a healthy run rate year-on-year. The city has attracted $309.4 million (Rs 2,250 crore) during H1 2021 (January-June) accounting for 12.89 per cent of the total investments attracted by the nation during the period.
In H1 2021, the city’s investments surpassed its counterparts such as Pune ($232.3 million/Rs 1,690 crore), Mumbai ($188.6 million/Rs 1,370 crore) and Kolkata ($104.6 million/Rs 760 crore). Chennai did not attract any standalone investment during the period.
There was a joint venture formed between CPP Investments and RMZ Corp equating $210 million (over Rs 1,500 crore) for projects under construction in Hyderabad and Chennai. In the absence of bifurcation, these deals are treated as multi-city deals and are not a part of city-wise investment volume.
Ramesh Nair, CEO, India & MD, Market Development, Asia, Colliers, told Telangana Today, in an exclusive interview, “Hyderabad has emerged as a favoured investment destination especially for office and residential assets. During 2015-2019, Hyderabad has recorded the highest growth in private equity investments compared to the preceding five-year period.”
“With investors continuing to view office assets favourably, Hyderabad’s upcoming office assets will hold much potential led by demand from technology companies for their global centres. On the residential side too, investors are exploring assets in the city led by sustained end-user demand in the city. The State has consistently ranked among the top in ‘ease of doing business’ backed by robust infrastructure and an investor friendly government,” Nair added.
Hyderabad witnessed an investment of $79 million (over Rs 570 crore) in H1 2020, surpassing Pune which saw an investment of $39.7 million (about Rs 290 crore), while Bengaluru, Chennai and Kolkata did not attract standalone investments during the period.
Nationally, investments in real estate properties went up to $2.4 billion (Rs 18,600 crore) in H1 2021, representing a 52 per cent increase from inflows in assets in H1 2020. Office sector investments accounted for almost 35 per cent of total investments in the first half of 2021, according to Colliers research.
“There is a huge potential for global funds in India. Office assets will continue to gain fervour from investors due to the steady returns from the asset class, and opportunity to bundle the assets under a Real Estate Investment Trust,” Nair added.