Private equity investments in the real estate sector increased by 26 percent during 2016 and touched a nine-year high of nearly Rs 40,000 crore, according to property consultant Cushman & Wakefield.
Mumbai saw the highest share of inflow at 32 percent of the total private equity investments in real estate (PERE). “PERE inflows in 2016 were seen at their highest in nine years at Rs 399 billion (USD 5.97 billion), registering a 26 percent increase from Rs 316.7 billion (USD 4.8 billion) in 2015,” the consultant said in a statement.
The number of deals closed during the year also rose only 5 percent with 119 deals. Average deal size increased to Rs 3.4 billion (USD 50 million) from Rs 2.8 billion (USD 43 million) 2015, signalling increased confidence amongst investors to make larger investments into the Indian real estate sector.
Read more: CNBC Moneycontrol