Bangalore outpaced other metro markets with 42% of PE investments
Private equity investments in the realty sector have picked up pace in 2013, with a steep rise of 79% in value terms. The IT capital of the nation has roped in a lion’s share of Private Equity (PE) investments in the real estate market during January-September 2013 that stands at 42% of Rs 4716 crore.
Termed as the IT hub of the nation, Bangalore boasts of some of the best developers in the country. Increase in investments in leased income generating office properties by institutional investors stands out as the principal reason for the healthy increase in the percentage of PE investments in the city.
In comparison to other cities
According to market data, Bangalore tops the chart among all other metro markets, with approximately 42% of Rs 4,716 crore (roughly $755 million) of the total PE investments. This is 3 times the share of Pune’s investment where the equity flow stood at Rs 780 crore and accounted for 16.53% of the total PE volume. NCR attracted Rs 612 crore (12.97% of the investment pie) while Mumbai received 15.26% of the PE volume (Rs 720 crore).
In a general overview, property consultants quote that PE investments in the Indian realty sector have flourished by 26% in the same quarter (Jan-Sep) in 2012, with Pune, NCR and Mumbai attracting 23%, 20% and 43% while Bangalore reporting an increase of 78.93%.
Growth of PE funds
With IT as its biggest supporting factor, Bangalore’s real estate sector has witnessed a huge development and has come of age. The existence of national and global software giants in the city has made significant contribution in taking the realty sector of Bangalore to the next level. As a result, the demand for residential properties in the city kicked-off.
Well-suited environment for business and manufacturing units, the influx of expatriates in huge numbers each year and high potential to thrive as a realty hub of South India stands out as some of the reasons for the rise in PE funds in Bangalore every year. In addition to it, relatively low property prices make the city as one of the most attractive destinations for both investors and buyers as well.
