BANGALORE: The country’s IT capital has attracted the lion’s share of private equity (PE) investments in the real estate sector, approximately 42% of Rs 4,716 crore (roughly $755 million) of the investment that has flowed in between January and September this year.
Bangalore has outpaced all other metro markets, attracting three times the share of investments of Pune, the second biggest with an equity flow of Rs 780 crore, accounting for 16.53% of the PE deal volume. Mumbai attracted 15.26%, or Rs 720 crore, NCR received Rs 612 crore, a 12.97% share of the investment pie, as per data shared by consultancy firm Cushman & Wakefield.
Bangalore’s impressive performance has been led by QIA’s (Qatar Investment Authority) investment of $300 million for a 24% stake in an SPV of IT park developer RMZ Corp, a deal that was first reported by TOI earlier this year.
Overall, PE investment in indian real estate has grown by 26% over the similar nine-month period in 2012, with Bangalore reporting a 78.93% increase, Pune a 233% growth, and NCR a 20% increase. Mumbai, however, was the only metro to report a massive decline; it fell 43%.
Given the low GDP growth figures and inflationary pressures, coupled with subdued residential sales across the country and a 15% dip in office space absorption, the Indian real estate market has done well.