Overseas funds focus selectively on Indian real estate
Analysts say that interest of overseas funds in the Indian real estate sector is intact but the approach has changed. The investors have turned their focus on specific project.
About $2 billion private equity had come into the real estate sector in the past two years and funds were keen to make investments after considering the value proposition of individual projects.
In case of commercial space, the demand had declined to 25 million sft to 2009. However, the demand was subsequently up to 30 million sft. Retail space has a vacancy position of 20 per cent out of the 15 million sft available at present.
The residential construction segment is driving the real estate sector due to the quick turnaround time for both developers and equity funds.
To read more real estate news:
Red Fort Capital invests in residential projects of Prestige Estates
Demand for commercial spaces, Indian real estate, Indian real estate sector, overseas funds, Private equity (PE) firms, Private equity firms, Private equity funds, Real Estate Developers, residential construction segment, retail spaces, retail vacancy rates, value proposition of projects
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