PE Firms invested Rs.700 Cr in the NCR real estate last year. This was reported by Cushman & Wakefield, global real estate consultants.
Global real estate consultants Cushman & Wakefield has reported that Rs.700 Cr was invested in the NCR Real Estate last year. However, the PE firms showed cold-sentiments to Gurgaon.
In the year 2012, overall Rs.19,000 Cr was invested in India. One third of the total investments was done by PE firms. The remaining portion of investments was made through institutional sales.
According to the report of Cushman & Wakefield, NCR real estate saw a good response from the PE investors who invested Rs.700 Cr here. On the other end, Gurgaon saw a weakening interest of the private equity investors.
Cushman & Wakefield reports that India saw a growth of PE investments by 7 percent. In India they have totally invested over Rs.6200 Cr.
Accordingly Indian realty market remains one of the most sought after realty markets in the world. Worldwide Indian realty market stands on the 20th position.
Though the PE investments have risen by 7 percent, the number of PE deals has fallen. As the deals were of greater volumes, the market did not receive a huge blow. Some bigger deals were reported last year.
Commenting on the falling number of PE deals, Om Chaudhary of Fire Capital aka First Indian Real Estate said that the PE investors have become cautious to invest in the Indian realty.
Gurgaon based PE firm Fire Capital mainly focus on realty. However they have not yet invested in any of the Gurgaon projects.
Now the returns have become very minimal. This drives the PE investors away from investing in real estate. Real estate market offers vast expectations, but minimized returns, said Mr. Chaudhary.
His firm has invested in many residential, mixed use and other projects. The firm mainly concentrates on NCR real estate, except Gurgaon where they have no investments at all.