Dwindling market conditions in the real estate sector have ushered in a new scenario with regards to the investments. Private Equity firms’ fund raising and investment in real estate sector is more converged towards residential segment. Shubhkamna Advert finds that this is an approach contrary to the earlier preferred method of investing in diversified segments of real estate.
Citing a report by JLL India, Shubhkamna Advert reviews the current scenario and remarks that there has been a discernible change of focus among investors pertaining to their investments in 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.
During this period, 66% of funds were diversified. The share of such funds has reduced to negligible levels, post-2014. In a striking contrast, residential-focused funds have increased to 85% today from the then meager figure of 14%.
According to Shubhkamna Advert, these two trends are reflective of the changed approach of investors. They now prefer to be residential focused instead of weighing every asset class and its benefits. This has allowed them to garner more returns on investment.
From 2014, Indian real estate has witnessed private equity investments worth $2.2 billion and this is even before taking into consideration the platform level deals worth $2 billion. “When we compare the quantum of activities in last 18 months to investments between 2009 and 2013 that were worth USD 3.9 billion, this uptick is clearly evident. Per year investment has increased by two times," JLL India said in a report.
In a change of trend, investors now prefer investing their money in less number of developers and in fewer property markets. In 2007-08, investors went out to close to 30 cities for deals and are now focusing on top five to eight cities.
Source:- http://shubhkamnaadvert.tumblr.com/post/134046391841/private-equity-firms-narrowing-down-of-investment
Citing a report by JLL India, Shubhkamna Advert reviews the current scenario and remarks that there has been a discernible change of focus among investors pertaining to their investments in 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.During this period, 66% of funds were diversified. The share of such funds has reduced to negligible levels, post-2014. In a striking contrast, residential-focused funds have increased to 85% today from the then meager figure of 14%.
According to Shubhkamna Advert, these two trends are reflective of the changed approach of investors. They now prefer to be residential focused instead of weighing every asset class and its benefits. This has allowed them to garner more returns on investment.
From 2014, Indian real estate has witnessed private equity investments worth $2.2 billion and this is even before taking into consideration the platform level deals worth $2 billion. “When we compare the quantum of activities in last 18 months to investments between 2009 and 2013 that were worth USD 3.9 billion, this uptick is clearly evident. Per year investment has increased by two times," JLL India said in a report.
In a change of trend, investors now prefer investing their money in less number of developers and in fewer property markets. In 2007-08, investors went out to close to 30 cities for deals and are now focusing on top five to eight cities.
Source:- http://shubhkamnaadvert.tumblr.com/post/134046391841/private-equity-firms-narrowing-down-of-investment
No comments:
Post a Comment