Private Equity players are expecting property sales to improve in 2016

Q: Private Equity capital has been helpful in moving the real estate boom in India, but it is a sector where banking finance has had its own restrictions to manage.

Sankalp, Mumbai

22nd January 2016

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Replies (2)

Hi folks,
The majority felt that while office capital rates will remain the same, the average Rate Of Interest expectations will actually decrease in this period.

Rishi Dev,

22nd January 2016

Comment

As per JLL India's survey of seasoned investment professionals across a number of issues like market fundamentals, successful exits, distressed deals as well as top 3 asset classes and top 3 cities for investment over the next 12 month period. Other issues examined included exploring affordable housing as an investment theme, ideal holding period, share of pure equity deals etc.

darshil. kumar, Bangalore

22nd January 2016

While office real estate emerged as the top asset class for investment, with mid-level residential and IT/ITeS office rounding up the Top 3 asset classes for the coming year. Mumbai & MMR, Bangalore and Pune emerged as the Top 3 cities as investment destinations.

Suraj Kalled, Pune

22nd January 2016

May be.....but Capital flows are expected to increase with newer sources likely to enter the market. Market sentiment is also expected to improve with the implementation of regulations such as RERA.

darshil. kumar, Bangalore

22nd January 2016

Yes, after a relatively deaden CY 2013 and CY 2014, PE investors increased their bets into the Indian real estate sector significantly in CY 2015 as they foresee better property sales this year. Investors clearly voiced that the refinancing cycle is not expected to meet its logical conclusion in 2016; however the number of successful exits will increase over the next 12 months.

Rishi Dev,

22nd January 2016

Comment

Hi Rishi,
I don't think so. But India's largest international property consulting firm JLL India and RICS units latest research report on Capital Market trends in the Indian Real Estate sector and said that significant majority of investors expect sales improvement over the next 12-month period.

Jamuna sikhri, Delhi-NCR

22nd January 2016