Cash less real estate sector is facing problem
The cash less real estate sector which has been facing problem to raise funds for the past couple of years have started to remove the fresh investor interest. The Private equity (PE) investment in the sector is being expected to be the Rs 10,000-15,000 crore in FY15.
Interest in the realty sector had dropped significantly post the 2010-11 when it got the private equity investment of more than Rs 20,000 crore. This dropped down to more than around Rs 3,000-4,000 crore in the FY-14 as experts said. The investment in the real estate sector from the private equity players is once again being expected to bounce back to Rs 10,000-Rs 15,000 crore mainly in the mid-segment and affordable segment as the chief executive officer of Liases Foras, Pankaj Kapoor stated.
The government is focusing on the affordable housing, investors and developers are focusing on the affordable and mid segment projects all across the country. PE funds got very poor returns from their earlier investments in real estate and became cautious about putting money in it. Now, change is in the air. Ask Group, a diversified financial services group, plans to invest around Rs 500 crore in mid-segment residential projects in FY15. Shiram Properties too is investing in mid-segment residential projects. The managing director stated that they are looking forward to projects in major cities like Kolkata, Hyderabad, Chennai and Bangalore.
Source: The Financial Chronicle
Affordable Housing, cashless real estate sector, facing a severe cash crunch, Liases Foras, Private equity firms, Private equity funds
