First Quarter PE Investment in Realty Highest in 5 Years
Private equity investors have invested Rs 2,800 crore in property in the first quarter of 2014, says a report published by the real estate advisory firm Cushman and Wakefield. This investment is nearly 2.5 times that invested last year. This first-quarter investment in realty is the highest recorded since the second quarter of 2009.
This comes as a surprise, considering that the realty market has been living under dark clouds, with buyers hesitating to buy property and developers stuck with a large stock of unsold property.
Comparing the private equity funding received by city realty markets, Bangalore ranked in the most investment, at nearly 70%. The shared investment of Rs 1150 crore by Blackstone, Standard Chartered, and Embassy India in Bangalore’s Vrindavan Tech Village and the Peninsula Brookfield’s investment of Rs 250 crore in Mantri Developers are the notable deals.
What This Means for Property Buyers
Such a large investment is likely to propel long-stuck projects in completion. This is critical for property buyers as they can now be more confident about getting possession of the flats they had booked long ago.
Amit Bhagat, MD and CEO of the real estate private equity fund ASK Property Investment Advisors suggests the sentiment will revive after the elections, and is optimistic about job creation improving the real estate market across the metros, tier-II, and tier-III cities.
The mid-income housing segment, with launches in the price range of Rs 30 to Rs 60 lakh, will benefit, say market observers.
Impact on the Commercial Segment
The commercial segment, which hasn’t exactly been in the pink of health, has received over half of the total private equity investment.
Sanjay Dutt, Executive MD, South Asia, Cushman and Wakefield says the attractive prices and potential long-term rental returns may have attracted such large investments in this segment.
Source: The Hindu Business Line
investment in realty, investment in realty market, Investment in realty sector, Private Equity, Private equity (PE) firms, Private equity companies, Private equity firm, Private Equity firm (PE), Private equity funds, Private equity investment companies
