Private equity (PE) investments in the real estate sector rose by 72 per cent to Rs 25,683 crore last year, highest since 2008, mainly on fund infusion in the sluggish housing segment, according to property consultant Cushman & Wakefield.
Out of the total PE investment in the realty sector during 2015, over Rs 18,000 crore was in residential segment, which is facing a huge slowdown since last 2-3 years, resulting in liquidity crunch and significant delays in projects execution. According to the C&W, the total PE inflows in the sector stood at Rs 25,683 crore in 2015. “The PE investments were considerably higher by 72 per cent from the previous year and highest since 2008. The substantial increase in PERE(Private Equity in Real Estate) investments during the year was led by a three-fold jump in investments made in the residential sector,” the consultant said in a statement.