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Will private equity investments go up/down in Indian real estate?

by Prafulla Mishra Freelance Advisor

The private equity investments in Indian real estate have touched their highest level in nine years at Rs. 39,900 crores. The residential properties endured the most preferred property class as over 3.1 billion of total private equity investment was notified in the assets class during the year. Within residential equity real estate investments, Mumbai is most preferred locations for living and accounted for share as thirty-four percent, followed by Bengaluru and Delhi NCR accounting for 20% and 26% of the share respectively. The domestic money was most active realty investors in residential properties and accounted for almost eighty percent of total investments. Indian real estate sector have seen the resurgence of interest in the year 2017 after the slowdown over past two to three years, buoyed by affordable housing segment that includes residential units of below fifty lakh. A recent effort by the government to regulate sector has been viewed by those investors who are now searching at long-term potential of the Indian market. Considering the market of various cities such as Mumbai and Bengaluru, there are many experts in the field who believe that it is just a beginning of the boom and in coming days there will be the golden period of the sector again.

Private equity investment in real estate are estimated to touch $7.2 billion on this year up fifty-three percent as both residential, and office properties continue to create interest among foreign and domestic investors according to the report by the global real estate firm. Indian Government has offered several incentives to the home buyers to target at affordable housing segment that is mostly expected to augment the demand further. In terms of the location, Mumbai remained a top destination for the investment in both commercial and residential segments. As per the report, REIT eligible commercial assets both in office and retail could offer investment opportunities.

A lack of available housing options is combined with the limited income and the minimal approach to the home finance for the low-income borrowers that million of the Indian households are currently live in a cramped, slum areas, and poorly constructed houses. The government planned on Housing for All for the investors. It is the best opportunities for the PE investors will look for the projects that show best prospects. Investment in housing is capable of attaining the three-in-one solution of the employment generation, human development, and economic development. About eight percent of the real estate developed is residential spaces and office spaces, hotels, shopping malls and hospitals.

The real estate developers in India is opening a demand for the affordable housing peoples to take huge benefits of incentives that are provided by the Government. Affordable housing generally works with the lower margins and budget compensated that offer good tax benefits. The Builders in India built the affordable house at world class facilities for the peoples in Mumbai to fulfill all the home buyers’ needs.


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About Prafulla Mishra Innovator   Freelance Advisor

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Joined APSense since, June 8th, 2017, From Pune, India.

Created on Dec 31st 1969 18:00. Viewed 0 times.

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