Private equities are less interested in real estate funding
The real estate builders and developers must search for alternate source of funding as Private Equity funds are not showing interest in investing into real estate projects in India.
The investment volumes as well as the number of investment in real estate projects has been reduced in last one year.
As the growth rate and Return on Investment has decreased considerably, the PE firms are looking for other areas of investment.
The real estate market is consolidated and PE funds have become more debt fund rather than equity based funding option. That is why the PE firms are not finding the requirements attractive in the realty market.
With the increasing cost of capital raising, the PE firms are looking for smaller projects for better return.
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Source : The Hindu Business Line
Investment, PE funds, Private Equity, Private equity funds, real estate builders, Real estate projects, Real estate projects in India, Real-estate market, Realty market, return on Investment, smaller projects, source of funding
