The real estate sector has hogged the attention among favored investment avenues for a host of venture capital funds (VCFs) and foreign venture capital investors (FVCI) during the preceding fiscal. Amongst different sectors, together with IT and telecom, real estate alone attracted twenty percent of the total investments made by both VCFs and FVCIs during previous fiscal.
Of the overall investments of Rs 103,470 crore in 9 dissimilar groups, real estate alone attracted more than Rs 20,000 crore investments during the previous fiscal, followed by the service sector (Rs 9,350 crore), according to data available with the Securities & Exchange Board of India (Sebi).
According to the data available, there has been a sharp raise in investments from both the segments of investors. In the Ist quarter’s (ended 30 Jun 07) investment of Rs 2,788 crore, the sector received a whopping investment of Rs 7,285 crore in the last quarter (ended 31 Mar 08), thereby taking the cumulative investment to over twenty thousand crore rupees during the financial year.
IT, regarded as to be a preferred among the investors till one year ago, lost its shine and ended up in third place after the services sector.