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Mumbai attracts 40% private equity investment in Indian real estate

Mumbai attracts 40% private equity investment in Indian real estate

Mumbai attracted 40% of the $2.4 billion (around Rs 15,500 crore) private equity (PE) investments in the Indian real estate between January and September 2015.

Global real estate consultant Cushman & Wakefield, which released its report on Wednesday, said the total PE investment this year was the highest since 2008. The investments come when the office absorption across top eight cities is estimated at 158 million sq ft during 2015-19, it added. The PE investment this year is an increase of 84% over the corresponding period in 2014.

The figures were released in the annual real estate investment publication, ‘`India Real Estate-Resurgence on the Anvil’ in association with the Global Real Estate Institute.

Delhi-NCR and Mumbai remained the top contributors in attracting PE investments this year. Mumbai attracted the highest PE investment volume with over Rs 7,000 crore, followed by Delhi-NCR, which garnered a 24% share.

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“The increase in momentum may be attributed to a few large deals in Mumbai and Delhi-NCR. With Indian banks shying away from lending to developers, developers are becoming more reasonable in pricing to attract investors,” said the report.

The residential sector attracted majority (77%) of the PE investment volume between January and September 2015. “This year appears to be heralding a revival of interests of private equity investors in real estate,” said Sanjay Dutt, MD, India, Cushman & Wakefield. “There has also been a return of some blue chip investors who had withdrawn a few years ago, re-entering the Indian real estate market with direct investments. A number of Chinese investors have also been showing strong interest,” it said.

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