Investment in Real Estate Will Recover In 2021

As per Savills, PE (private equity) investment in real estate will grow by 30% to $6 billion in 2021 after falling by 31% to $4.6 billion in 2020. The strongest activity is likely to be observed in warehousing and data centres segments, followed by commercial office s

BY Realty Plus
Published - Thursday, 31 Dec, 2020

Investment in Real Estate Will Recover In 2021

As per Savills, PE (private equity) investment in real estate will grow by 30% to $6 billion in 2021 after falling by 31% to $4.6 billion in 2020. The strongest activity is likely to be observed in warehousing and data centres segments, followed by commercial office space and residential segment. The residential segment could be buoyed by the developing strength of affordable housing and possibly also the emergence of rental housing in India on the back of recent ARHC guidelines. This pattern is consistent with Savills’ tracking of the real estate sector in India where a boom in residential housing was followed by commercial office space and then warehousing. However, the nature of investing would be different from previous years. Investors are likely to adapt themselves in the altered world order – Distressed asset purchases, structured finance products, loan book purchases and large opportunistic deals are likely to become more prevalent.