Private Equity investment drops by 15% in realty

By Accommodation Times Bureau

According to the global property consultant Cushman and Wakefield reports the private equity investments in the realty sector declined by 15% in the first three quarters of 2012. The consultant blamed that the drop in PE investments is because uncertain investments in the country among others.

Sanjay Dutt, MD, Cushman and Wakefield said, ‘’the Indian real estate sector has seen a drop of 15% in PE investments in the first three quarter of the calendar year 2012 compared to a year ago’’. During the first three quarters of previous year, the real estate industry had attracted investment worth Rs.4, 110 crore.

Giving us the reason for this fall he say,’’ it is mainly because lot of concerns on the government policy front conjugated with uncertainties, valuation focus on the venerable funds.

He however believes that this shortfall can be made up in coming quarter on working of recent policy, new market strategies, opportunities in booming markets like NCR, Mumbai, Pune, Bengaluru, and Chennai.  According to the reports, the total of private equity transaction till date is 23 marginally lower then last year. The residential segment has seen maximum PE investment of the total private equity investments increasing by 9%. Mumbai is the first preferred destination for private equity followed by Bengaluru and the NCR.

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