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‘Bumper year for real estate sector’

The sector may close with Rs 43,600 crore worth PE transactions this year

Policy Pulse
Publish Date: Sep 26 2016 9:21AM | Updated Date: Sep 26 2016 9:21AM

‘Bumper year for real estate sector’

They year 2016 brought positivity in the real estate sector. It is expected to record the highest level of private equity investment in the sector since 2008.


Report by global real estate Services Company Cushman & Wakefield suggests that Indian real estate is estimated to close the year with an inflow of Rs 43,600 crore through PE transactions. 


More than half of this total - over Rs 24,500 crore - is likely to be invested in the second half of 2016, with the first half recording transactions of Rs 19,100 crore. 


The report is based on the current pace of investments, people’s interest and economy graph. Investments in office assets jumped 157% to Rs 4,236 crore in the first six months of 2016.


Factors such as increased foreign investment and leasing activity, strong GDP growth and economic forecasts, improved governance and government initiatives have attracted investments in India. 


"Indian real estate has seen good traction, from both domestic and global investors, which is reviving economic confidence," said Anshul Jain, managing director-India at Cushman & Wakefield.


The run is expected to continue with more investments being made in completed/leased corporate assets and other activities such as retail and hospitality.


PE investment into real estate jumped 64% in the first half of 2016. The number of deals concluded during the period increased to 57, up 24% from a year ago.