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PE investment in real estate increases by 85 %

Posted: Tue Apr 28, 2015 6:02 pm
by jayprakashimtn
According to a report from global property consultancy Cushman and Wakefield, private equity in Indian real estate companies rose by 85% in the January-march period. From January to march this year, the PE firms invested Rs.5168 crore in real estate firms, significantly higher than the sum of Rs.2800 crore invested last year. The investment is still 5.6% lower than the October-December quarter.

The report said that residential developers face liquidity issues arising from decreased demand and restricted access to debt funding. The PE investment in real estate can be divided into two segments: residential segment and commercial segment. The PE investment in the residential segment stood at Rs.2752 crore, while commercial space managed to nab Rs.2416 crore worth of PE deals. The report also mentioned that 158% increase in residential assets, and 68% increase in commercial assets, compared to the first quarter of the year 2014, coupled with improved market sentiment, played an important role in this development.