Indian Real estate investment market, among top 20

Cushman & Wakefield report showed that India is one among the top 20 real estate investment markets of the world. India ranks 20th in the list.

Mumbai: Real estate investment is one of the best options of investment in India. This might be the reason why India has got a place inside the top 20 real estate investment markets of the world.

China and USA are on the top two positions. While investment in China was $304.1 billion, in USA it was $267.1 billion. Other countries did not gain much amount of investment.

Cushman & Wakefield reported that there is a six percent increase in the investment activities in 2012. The rise was more visible in the last quarter of 2012.

The latest report of Cushman & Wakefield, titled International Investment Atlas, ranks India as the twentieth best investment market. Last year $ 3.4 billion (INR 190 billion) was invested in India. With this India reached the twentieth spot among the top real estate investment markets.

UK, Germany and Japan stood third, fourth and fifth respectively with investment $56.3 billion, $45.6 billion and $34.7 billion.

Private equity investments increased in India. The PE investors like Blackstone and others have played a crucial role. However majority of the investments is done in the form of institutional sales.

PE investment in India rose by 7% last year. Meanwhile there was a decline of 37% in the institutional sales. These have affected the scale of real estate investment in India.

Interestingly, as against the normal tendency of Private Equity in Real Estate in the residential sector, last year witnessed an increase of PERE in commercial sector.

Though there were a large number of PE investments in the residential sector, the amount was comparatively lower. Around 25 PE deals took place in the residential sector.

Sanjay Dutt, Cushman & Wakefield’s South Asia Executive Managing Director, said that investments in the commercial sector are less risky. Further they are becoming more attractive these days.

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