Bangalore is the choicest destination for the PE Investors
The data published by property consultancy firm Cushman & Wakefield brought some cheer to the real estate market in Bangalore. The real estate market in Bangalore attracted the maximum private equity (PE) investment in the country in the first half of 2014. The IT Capital Bangalore outperformed the national capital Delhi as well as the commercial capital Mumbai and attracted the maximum PE investors.
Led by high demand for office spaces as well as steady demand for residential properties, the city’s real estate market saw PE investments jump manifolds. This jump was nearly 20 times year-on-year to Rs. 2005 crore. The city had received PE investments worth Rs. 103 crore in the first six months of 2013.
While Mumbai received investments worth Rs. 1,140 crore, Delhi-NCR got Rs. 490 crore and Chennai Rs. 200 crore during the same period. Sanjay Dutt the executive managing director- South Asia, at Cushman & Wakefield mentioned that availability of investible leased office assets and stable yields kept the interest levels high.
The investors have chosen Bangalore over other cities as most of these assets have high occupancy rate and provide stable yields of approximately 9%. This factor has made them highly attractive to the investors. Dutt also speculated that the share in overall PE investments is expected to remain significant in the coming years for Bangalore.
Source- The Times of India
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