Pri­vate Eq­uity in­vest­ment in­creases in Pune’s real es­tate

Accommodation Times - - Real Estate Investments -

Pune real es­tate mar­ket showed an in­crease of about 300 per cent in­crease in pri­vate eq­uity in­vest­ment dur­ing 2013, it con­trib­uted an amount of over Rs. 1, 464 crore, in the year 2013. This was re­vealed in a re­search re­port by Cush­man & Wake­field has said. “With grow­ing hous­ing de­mand, in­vest­ments in the right project have the po­ten­tial to yield healthy re­turns,” men­tioned in the re­port.

Ac­cord­ing to the re­port, Pune city ranks on fifth po­si­tion of the Rs 7,000 crore to­tal in­flows from pri­vate eq­uity funds (13% higher than the pre­vi­ous year) in the coun­try’s real es­tate sec­tor for the year. The in­crease in pri­vate eq­uity in­flows was pri­mar­ily due to ris­ing in­vest­ments in res­i­den­tial as­sets and other sec­tors like re­tail and hos­pi­tal­ity, the re­port said. “While the num­ber of deals has in­creased to 40 in 2013 com­pared to 34 in 2012, the aver­age deal size has de­clined marginally to Rs 175 crore ($28 mil­lion),” the re­port added.

The main fac­tor which are at­tract­ing pri­vate in­vestors are en­try of real es­tate in­vest­ment trusts (REITs), re­duc­ing fis­cal deficit and ex­pec­ta­tions of fall in in­fla­tion and a pick up in GDP growth post the Lok Sabha elec­tions, the re­port noted.

San­jay Dutt, ex­ec­u­tive man­ag­ing di­rec­tor for South Asia at Cush­man & Wake­field, said, “The res­i­den­tial as­set class continues to pro­vide tremen­dous po­ten­tial for growth in the com­ing years. With hous­ing re­quire­ments grow­ing across cities and funds in­vest­ing in the as­set class, pri­mar­ily in the form of non- con­vert­ible deben­tures, pro­vid­ing fixed re­turns, in­vest­ments in the right project have the po­ten­tial to yield healthy re­turns.”

Anuj Puri, coun­try head and chair­man of real es­tate ad­vi­sory com­pany JLL In­dia, said in­vestors are en­thu­si­as­tic about In­dia as a vast army of young, ed­u­cated In­di­ans is set to turn the world’s sec­ond most pop­u­lous coun­try into a talent pow­er­house. “The con­sumer base is grow­ing fast as a swelling mid­dle class comes on­line.”

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