Thursday 19 November 2015

PE investments in Indian realty starting a new phase

Private equity investments in Indian real estate is starting a new phase, says JLL India.

In its report ‘Real Estate Private Equity 3.0’, JLL India said “We believe so; the PE investment community has learned from the past and has improved, and the possibility of them focusing on higher returns at the cost of risk again is unlikely.

“If the Indian Government, which has generated a lot of hope, works on the right path and delivers what it promised, the industry will have patience and will move positively,” it added.

Anuj Puri, Chairman & Country Head, JLL India said, “There has been a clear increase of focus among investors about where they want to invest their funds. During 2007-08, investors left no stone unturned to participate in India’s economy and real estate growth story, and invested across all possible asset classes. In the same period, 66 per cent of funds were diversified.”

“The share of such funds has reduced to negligible levels, post-2014. In contrast, residential-focused funds have increased to 85 per cent today from the then measly figure of 14 per cent. These two trends show that the investment approach of investors has changed from weighing every asset class on the opportunity it presented to becoming residential-focused, as this asset class has given maximum returns over the years.”

Source: PropertyatNeoDevelopers.Wordpress.Com

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