Majority of the PERE Investments are done in Bangalore and Mumbai. Experts opine that this is due to the higher number of IT hubs in these cities.
MUMBAI: Private Equity in Real Estate is one main sources of income for the builders. However the recent reports show that the PERE investments are mainly done in Mumbai and Bangalore.
While Bangalore and Mumbai hold the major share of the PERE investments, Pune and Chennai too have a few of them. On the other side there are no PERE projects in the North India.
According to a recent report, Bangalore has the most number of PERE investments. While Mumbai stands second, Delhi-NCR is third.
The third position of Delhi-NCR has raised the eyebrows of the experts. Mostly it is because there is no such investment in the region.
Experts say that there are some Delhi-registered developers who have obtained PERE investments. Indiabulls Infratech and Jwala Real Estate are two of them. Though they are registered at NCR, their projects are not in NCR. Both of them are having projects in Mumbai.
It means that the National Capital is not any favorite for the PE investors. For most of the top PE firms like Blackstone, Bangalore is the top and most favorite.
Blackstone has invested over $600 million in India. Most of them are invested in Bangalore. Investment in Manyata IT Park Bangalore is one of the major investments.
The American PE major also has invested in three commercial and IT projects in Pune and Bangalore. It will join hands with Embassy group for developing some residential projects as well.
In the opinion of experts, the PE investors are keen to invest in IT hubs. South, having many IT hubs, invites more PERE investments. This is the reason why the PE investors are attracted to the South and West cities.
Whatsoever, Bangalore, Chennai, Mumbai and Pune together bag nearly 84% of the total PERE investments.
