According to a report by Knight Frank India, private equity investments into India’s real estate market is expected to cross $4 billion this year, the highest since 2010. Investments from private equity funds was almost stagnant between 2011 & 2014.
- With new reforms introduced in the real estate sector, the interest has been renewed and we have seen funds flowing in.
- According to the Knight Frank report, Indian real estate sector saw an average investment of $2.1 billion between 2011 and 2014 from private equity investors. It rose by 57% to $3.3 billion between 2015 and mid-September.
- Though the number of deals dwindled to 13 in 2017, the average investments per deal increased 10-fold to $246 million.
- As per the report, share of private equity investments into residential projects nearly halved from 50% in 2011 to 28% in 2016 and further dropped to a meagre 4% in 2017.
- Currently, office market accounts around 66% of the total private equity investments as against 29% in 2011.
Source: Hindustan Times