SECTOR WISE BREAK UP

share in total investments in H12016 in the residential asset class, the largest

of the investments went to commercial office asset class

to retail, a significant increase in H1 2016 compared to 2% recorded in H1 2015

investment in hospitality and mixeduse asset classes

THE YEAR AHEAD

Estimating from the pipe line for the rest of the year of 2016 is expected to witness the highest PE investments since 2008 through the sale of sizeable stakes in office portfolios by some of the prominent Indian developers.

THE POSITIVES

crore to `24,000 crore, the estimated cumulative range of these stakes

INCREASE IN PORTFOLIO OF OFFICE SPACES

Owing to improving economic outlook and uptick in leasing activity for office spaces, some of the PE firms are increasing their portfolio of office spaces, possibly with an intention to launch their own REITS The relaxation in FDI norms in other sectors such as food processing, defense, pharmaceuticals, etc. made during the second quarter is expected to attract investments, which in turn is likely to boost demand in the real estate sector, specifically in the industrial, logistics and warehousing assets.

WHAT THE GOVT CAN DO

The government needs to ensure effective implementation and monitoring of the announced policies in infrastructure development, land digitisation, RERA implementation, title insurance, Goods and Services Tax (GST), etc

RESIDENTIAL ASSETS AND PERE INVESTMENTS

share of residential in total PE investments during the first half of 2016. the share of domestic of the investments in residential assets with the remainder being made by foreign investors strategy were made via the structured debt

DOMESTIC INVESTORS

Domestic investors have preferred investments in residential assets as it is relatively easier to exit the investments with shorter investment cycles while allowing investment via a structured financing strategy with pre-agreed terms rise in cumulative in residential segment increased to Rs 83.65 bn in H1 2016, over the same period of the previous year