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