The latest report on Private Equity investments (PE) on India in 2013 by Cushman and Wakefield places Bangalore at the top in view of a declared investment of INR 1,979 crores. This figure indicated a whopping 79 % increase compared to last year largely resulted by huge leased amounts for office space. Behind Bangalore are cities like Pune and Delhi with transaction volumes of around 780 and 612crores respectively.
What has been disappointing is the statistics on Mumbai. The city. Which otherwise attracted a steady investment showed a 43% reduction in the total volume of deals. However, the figure is expected to rise in the immediate future.
The report says that the total value of declared private equity dealings in the realty sector for 2013 (first 3 quarters)stands at INR 4,716 crores, observing an increase of 26%. There has been an increased demand for income-generating office space across India. With the planned implementation of REITs, the Real Estate Investment Trusts, things are set for an organized way of functioning. And there has been an effective utilization of offshore funds and capital funds. With REITs, the sector would get organized further, and investors were convinced of this trend, say experts.
This is really something to look forward to, amid the sluggish phase due to worldwide financial slowdown, inflation rates, lack of supply, discrepancies in project completion and less sales.
Roughly 65% of the total investment in 2013happened during the3rd quarter at INR 3,078 crores. And, the total worth of funds in the office sector was estimated at INR 2,476 crores in the first three quarters in 2013, almost double than the previous years. Consumer interest in leased office structures were on the upward scale.
The housing segment also witnessed investment, yet, there was not any significant growth. However, launches in the first three quarters of 2013 seemed to increase by 5%. Nevertheless, the data is not impressive regarding sale of individual housing units.
Other related sectors like retail and hospitality have not been a great contributor. The cited reasons include less demand and inventory accumulation, altogether creating a dull situation.
What has been disappointing is the statistics on Mumbai. The city. Which otherwise attracted a steady investment showed a 43% reduction in the total volume of deals. However, the figure is expected to rise in the immediate future.
The report says that the total value of declared private equity dealings in the realty sector for 2013 (first 3 quarters)stands at INR 4,716 crores, observing an increase of 26%. There has been an increased demand for income-generating office space across India. With the planned implementation of REITs, the Real Estate Investment Trusts, things are set for an organized way of functioning. And there has been an effective utilization of offshore funds and capital funds. With REITs, the sector would get organized further, and investors were convinced of this trend, say experts.
This is really something to look forward to, amid the sluggish phase due to worldwide financial slowdown, inflation rates, lack of supply, discrepancies in project completion and less sales.
Roughly 65% of the total investment in 2013happened during the3rd quarter at INR 3,078 crores. And, the total worth of funds in the office sector was estimated at INR 2,476 crores in the first three quarters in 2013, almost double than the previous years. Consumer interest in leased office structures were on the upward scale.
The housing segment also witnessed investment, yet, there was not any significant growth. However, launches in the first three quarters of 2013 seemed to increase by 5%. Nevertheless, the data is not impressive regarding sale of individual housing units.
Other related sectors like retail and hospitality have not been a great contributor. The cited reasons include less demand and inventory accumulation, altogether creating a dull situation.
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