Ø Office assets see an investment of Rs. 57,300 crores since 2011
Ø Rs. 10,362 crores investment in Retail since 2011
Ø Warehousing has seen an investment of Rs. 28,136 crores since 2014 of the total Rs.
28,822 crores since 2011
Hyderabad, July 11, 2018: Knight Frank India, one of the leading International Property Consultants today launched the third edition of their Capital Markets report. Titled ‘Realty Asset Monetisation
2018 – An Overview’ the report deciphers the emerging trends in monetisation of real estate assets.
Key findings of the report:
PE INVESTMENTS ACROSS DEBT AND EQUITY:
PE investments across debt and equity shifted into a new paradigm post 2014 with the new
Government coming into power
2014 to USD 8.6 billion (Rs. 59,100 Cr) in 2017
270 Cr) per deal in 2011 to USD 102 million (Rs. 700 Cr) per deal in 2017
While PE investments into residential sector languished, investors flocked to the commercial assets
PE INVESTMENTS INTO EQUITY ACROSS COMMERCIAL ASSETS:
Will the cap rate compression continue?
SCOUTING FOR THE NEXT SET OF OPPORTUNITIES FOR PRIVATE EQUITY IN REAL ESTATE:
Using asset sales to shore up banks’ capital reserves
Fully compliant assets the need of the hour
Green buildings – the next destination
Developers should focus on constructing green buildings despite higher initial cost, as in the future the occupiers as well as investors would scout for such assets
Using technology in retail
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said “The real estate industry has been through a churn over the past few years due to a slew of structural reforms like demonetisation, GST and RERA. This led to a reduction in investment risk perception coupled with availability of matured assets resulting in a record Rs. 57,300 crores worth of PE investments being witnessed in 2017 alone. The investments which include platform deals and commitments have grown at a CAGR of 36% from 2014 to 2017. The exuberance continues in the current year with Rs. 33,700 crores already being invested in the first half of 2018. While office market has continued to remain strong, a closer look indicates that the once overlooked segments of retail and warehouse have seen a renewed interest from global institutional investors.”
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