Pune Real estate – Growth in Private Equity investment

Pune realty market showed an improvement of about 300% increase in private investment during 2013; it provided an expense of over Rs. 1, 464 crore, in the year 2013. It showed in an analysis report by Cushman & Wakefield has said.

“With increasing housing need, investments in the appropriate project have the inherent to generate healthy returns,” specified in the report.

Admitting the report, the city ranks on fifth position of the Rs 7,000 crore total inflows from private equity funds (13% higher than the previous year) in the country’s realty sector for the year. The increase in private investment inflows was originally due to increasing investments in residential assets and other areas like hospitality and retail, the report said. “While the amount of deals has progressed to forty in 2013 compared to thirty-four in 2012, the standard deal size has diminished marginally to Rs 175 crores,” the report added.

The major factor which are pulling private investors at Pune Properties are insertion of realty investment trusts (REITs), decreasing economic debt and expectations of fall in inflation and a pick-up in GDP increase post the Lok Sabha elections, the report noted.

Sanjay Dutt, executive managing director for South Asia at Cushman & Wakefield, said, “The domestic asset class advances to present high potential for growth in the upcoming years. With housing reservations growing across cities and funds investing in the asset quality, primarily in the form of non-convertible debentures, giving adjusted returns, investments in the best project have the inherent to generate healthy returns.”