PE
(Private Equity) investments in the Indian realty sector have seen a drop of
15% in the first 3 quarters of calendar year 2012, compared to a year ago.
According to property advisory firm Cushman & Wakefield, This year has so far seen investments of close to Rs. 3,500 crore across residential & commercial property segments compared to Rs. 4,110 crore in the same period last year,
Mr. Sanjay Dutt, Executive MD, South Asia, Cushman & Wakefield said, "Concerns on central government policy front coupled with uncertain investment scenario have led to the fall in number of deals. However, recent policy initiatives should turn around things in the coming quarter and make up for the shortfall"
The first 3 quarters have seen 23 deals being concluded by domestic & foreign private equity funds. The first quarter of the year saw the maximum action with Rs. 2.100 crore being invested in real estate while Rs.1,380 crore was invested in the remaining 2 quarters.
Mr. Sanjay Dutt also said, "While the second & third quarters depict a drop in investment volumes, the real estate sector continues to attract steady investments during the year. The transactions are more realistic now expecting post-tax return of about 20%"
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