Private Equity Funds: In favour of customers

By Accommodation Times Bureau

A new trend has started in realty where the funds are preferred from the private equity players. Realty requires a constant cash flow to keep it going. Such deals have been happening more in the residential real estate sector. The private players are investing in projects for shorter duration. Such investments are beneficial for the customers indirectly, since the developers will utilise the amount for their benefits.

The investors are very cautious while investing in real estate and prefer shorter investment. They are just to invest with guaranteed cash flow. The investors may exit when their returns are not expected by the stipulated time. In real estate sector, in the first half of 2012, 50% of the funds were invested by the private players.

The investors who invested during the boom period didn’t have exits whilst the slack period. But pertaining to the current scenario, despite inflation and cash crunch, investors have witnessed good sales. Many realty players have been turning back to private players and offering better returns, up to 30% annually.

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