Bangalore tops the chart with PE investment of 1979 crore
The real estate market of Bangalore hits it big, as it receives maximum private equity investment of nearly Rs 2000 crore during Jan-Sep 2013 (in comparison to other cities), in amalgamation with increased demand for leased office assets from institutional investors. In comparison with other cities, the percentage of private equity investment in Bangalore rose by 79%.
According to Cushman and Wakefield, the inflow of PE investments in the IT hub of the nation stood at Rs 1979 crore at the end of 3Q 2013, a steep rise from Rs 1106 crore in the same period a year ago. This rise in investment can be attributed to funds mainly focused on leased office assets.
Reason for the rise in investment
Property consultants quote that the increase was mainly attributed to rise in investments in leased income generating office properties by the institutional investors. Along with the offshore funds, the domestic capital assigned for revenue generating office properties was also elevated and deployed.
Bangalore is titled as the IT capital for south India and the profile of builders and developers in the city is worth mentioning. Going by the market reports, Bangalore is all set to witness a further hike in PE investments and ample availability of properties in all segments at reasonable rates.
In comparison with other cities
According to Cushman and Wakefield report 2013, the amount of PE investment in Pune stood at 780 crore in the 3Q 2013 from Rs 234 crore, in the same period a year ago. This is quite less in comparison to Bangalore. Furthermore, the NCR realty market witnessed a 20% rise in PE investments and received Rs 612 crore in the same quarter, however, it stood less in comparison to the garden city.
Mumbai, the financial capital of the nation, traditionally called for maximum investments, however the 3Q2013 bore witness to a 43% decline in PE investments in the city. The financial capital received at the end of third quarter 2013 declined and stood at Rs 720 crore from Rs 1262 crore in the same period a year ago. However, experts are of the notion that investment activity in the city is again going to gain momentum with few large deals that are in the pipeline.
