MUMBAI: Global real estate consultancy, Cushman & Wakefield's latest report on the private equity (PE) in real estate investment, reveals that approximately $2 billion (Rs 11,854 crore) is available with private equity firms ready to be deployed in real estate, despite a drop in the PE investment in the first half of 2013.
While PE investments in real estate was recorded at $276 million (Rs 1,638 crore) in H1 2013, which is 46% lower when compared to first half of 2012 ($514 million /Rs 3,050 crore), PE funds continue to show keen interest in the market with a number of deals in discussion. This decline in the quantum of private equity real estate investment (PERE) was essentially due to fewer deals (13 in H1 2013) as the average ticket size of deals remained same.
In reaction to the current prevailing volatility in the market, including slower growth of theIndian economy, political stalemates and depreciation of rupee, the pace of growth of the real estate industry in India has been impacted. While, there is a strong investment sentiment for PERE transactions in India, however, they display a reflection of the market sentiments, where funds are looking at only embarking on projects with strong fundamentals.
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