Delhi-NCR may see a rise in PE in­vest­ment in real es­tate

Accommodation Times - - .. Nation.. -

The Pri­vate Eq­uity (PE) in­vest­ment in the real es­tate mar­ket of Delhi-NCR is ex­pected to go up by around 50 per cet, in the pres­ence of new govern­ment. The realty ex­pert opined, that in­vest­ment in the realty sec­tor has been slug­gish, how­ever the seg­ment is ex­pect­ing huge surge in post elec­tion sce­nario.

An­shu­man Mag­a­zine, CMD, CBRE South Asia Pri­vate Limited said, “The in­vest­ment sen­ti­ment of most in­sti­tu­tional in­vestors (PE falls un­der In­sti­tu­tional In­vest­ment) about the NCR continues to re­main up­beat. The NCR-es­pe­cially Gur­gaon and Noida-has al­ways been one of the strong­est res­i­den­tial mar­kets for In­dia, driven by af­ford­able pric­ing and a mul­ti­tude of prod­uct of­fer­ings that are avail­able for buy­ers.” Delhi-NCR will con­tinue to see in­crease in­vest­ments into hous­ing due to the strong de­mand drive in the re­gion, cou­pled with the fact that Delhi as a met­ro­pol­i­tan city does not cre­ate any sig­nif­i­cant hous­ing sup­ply in the mid-mar­ket seg­ment, leading to a spill-over of such de­mand into the pe­riph­eral lo­ca­tions of Noida and Gur­gaon.

Fur­ther he said, the cur­rent sta­tus of the PE funds in cur­rent realty mar­ket in Del­hiNCR; Mo­hit Arora, MD, Su­pertech said, “In cur­rent mar­ket sce­nario, the PE funds are around 10 per cent of the net real es­tate mar­ket liq­uid­ity in Del­hiNCR. In post elec­tion sce­nario, we are ex­pect­ing around 50 to 60 per cent growth in one year, pro­vided that there is a sta­ble govern­ment.” He said that it takes around six to 12 month for a govern­ment to show its sta­bil­ity. How­ever, Arora was of the opin­ion that PE in­vestors would pre­fer to in­vest in mar­kets like Mum­bai, Pune and down south lo­ca­tions and the above men­tioned area is ex­pected to at­tract al­most dou­ble of the cur­rent PE funds in their mar­ket.

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