Global Private Equity Eyes Indian Real Estate: Report

BANGALORE: Post-general elections with a stable federal government at work, global private equity (PE) players find real estate in India worth investing for good returns, an international realty services firm said.

"Global PE investment in India is likely to exceed 12,000 crore ($2 billion) by end of this year, thanks to increasing interest globally in committing funds for the realty sector in the Indian sub-continent," Cushman & Wakefield estimated in a report.

With big deals taking place in the commercial office space during second half of 2014, PE investments are expected to be about 7,900 crore as against 4,100 crore in the first half of this calendar year.

"Clarity in government process will be critical to the investment market. Recent announcements by the central government will spur investments into the sector," said Cushman & Wakefield's South Asia managing director Sanjay Dutt on the occasion.

As projects in the commercial office space are more economically viable, PE investments have been betting on them due to high occupancies and the trend is set to continue till year-end.

"PE funds are also being raised for residential projects as construction capital and leased office purchases, from high liquidity committed by domestic and offshore investors," it said.
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