Hyderabad realty attracts billions in PE funding

Singapore investors are betting big on Hyderabad real estate and major private equity (PE) companies are investing billions of dollars into the city, surpassing Bengaluru and Chennai in funds inflow. Increased office leasing activity in the last few years has positioned Hyderabad as one of the most active commercial markets in the south. This is backed by supportive government policies and strong political stability. The city also offers the lowest office rentals in comparison to top markets in south India including Chennai and Bengaluru. As per industry research, of the total $14.01 billion (over Rs 90,000 crore) PE funds that came into Indian realty between 2015 and 2018, about one-third is pumped in by Singapore-based firms. Over the last few years, Indian developers were being forced to explore debt and equity funding from various private equity companies, with funding from banks and non-banking financial companies (NBFCs) drying up. The US-based investors pumped in nearly $4 billion (Rs 48,000 crore) during 2015-2018 and more than $700 million (Rs 4,900 crore) in the first three months of 2019 in India. Canadian PE companies, led by Brookefield, were the third-largest investors into Indian real estate over the last four years, with PE infusions close to $2.3 billion (Rs 16,100 crore).