Bangalore’s real estate tops PE investments


peAccording to a survey, country’s emerging real estate market Bangalore, received the maximum private equity (PE) investment of nearly Rs 2,000 crore during the first half with better demand for leased office assets from investors.

The PE investment in Bangalore rose by 80 pc to Rs 1,990 cr during the first three quarters of 2013 as compared to Rs 1,106 cr last year. This only due to a promise by a free fund into platform focused on leased office assets.

Bangalore is an IT hub and capital for southern India and the profile of the developers are very good in the city, are the main reasons behind Bangalore emerging on top in PE infusion.

The higher PE infusion in Bangalore also added advantage of availability of properties across all the segments at reasonable valuations.

Sobha Developers, Puravankara Projects, Prestige Estates and Brigade group are the major developers operating in the IT city. According to a report, PE investment in Pune jumped more than three-fold to Rs 800 crore during January-September period against Rs 256 crore in the same period last year.

National Capital Region’s property market got Rs 650 crore as PE investment, up 22 per cent from Rs 550 crore during the period under review. In NCR, all the investments were made in the residential asset.

Mumbai, which traditionally attracted the maximum investments, has witness a dip of 45 per cent in PE investments this year. The financial capital received Rs 730 crore during the first three quarters of 2013 compared with Rs 1,269 crore in the year ago period.

Overall, PE investment in the real estate sector grew by 27 per cent to Rs 4,779 crore in the first nine months of this year despite the slowdown witnessed in the realty market.

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