Realty sector drops by 15% in PE investment

According to Global Property Consultant in the real estate sector Private equity investment has declined by 15 percent in the first three quarters of year 2012, to Rs 3,500 crore compared to the previous year. The authority attributed the decrease in PE investments to unsure investment state of affairs within the country among others.

One of the companies Executive Managing Director stated that during the first three quarters of year 2011 real estate sector had attracted private equity investment worth Rs 4,110 crore.  In the first three quarter of the year 2012 the Indian real estate has seen a fall of 15 percent in private equity investments compared to previous years.

A lot of concerns on the government policy front combined with an uncertain investment scenario and focus on exits for some vintage funds are the reason for the fall in number of deals. He also added that expected shortfall can be recovered in the next quarter of the year through of recent market and business strategies in the major cities like Mumbai, NCR, Bangalore, Chennai and Pune.

According to the report till date in 2012 the total number of private equity transaction is 23, when compared to same period last year it was marginally low. The residential portion faced the maximal private equity investments with the increase by 9 percent in the first three quarters of the year 2012. Mumbai is the preferred destinations for private equity investments which are closely followed by Bangalore and the NCR.

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