PE funding in real estate spikes
India’s real estate market, which has attracted top dollars from global and domestic investors over the years, is going through an interesting phase where each asset class in the segment has taken a journey of its own.
The residential real estate segment, for instance, is emerging from the much-needed regulatory reform of Real Estate (Regulation and Development) Act (RERA), the impact of demonetisation and the Goods and Services Tax (GST). Meanwhile, the commercial properties segment has gone a step ahead in its evolution cycle and listed its first real estate investment trust (REIT).
One definitive trend is that rent-yielding assets—such as office buildings, malls, IT parks and warehouses—are on a strong footing and continue to attract greater capital than the residential segment.