Private Equity investments in Indian real estate have confronted $42 billion in the past 12 years from 2006 to 2017.
As investors look to gain from government incentives in affordable housing, the residential sector encountered highest ever inflows in 10 quarters.
According to reports, India has seen the investments of $42 billion in past 12 years and in the next 10 years, the market expected growth is $56 billion between 2017 and 2026.
Reports also showed major improvement from the inflows of the first quarter of the previous 11 years that from a year ago the private equity inflows into Indian real estate was 15% and now it rose to $2.6 billion or Rs 16,530 crore during the first quarter.
India is rising as a global investment destination because of its improvement in numerous factors, such as creating a positive economic environment, the presence of key factors, for instance, transparency, accountability, and ease of entry into various sectors in India. They are the key factors for making India an ideal global investment destination.
Private equity in real estate has the estimated growth which will be at 10% CAGR (compounded annual growth rate) and tier 1 and 2 cities will possess the benefit of it. A high amount of private equity will be attracted in the next 10 years, which will result in strong growth points.
The more investment will enhance the listing if REITs through which you can opt to exit or convert your holdings into tradable stocks, through income generating assets.
IT/ITEs for 2014-2017 YTD have risen by 150% where there is a strong attraction towards office sector, however, in the last 3 years (2014-2017) private equity inflows in office. According to the reports, the rise in the same period was a mere 5% of total investment flows in pure equity, though the highest invested sector was the residential sector.