With global investors committing over $2 billion in the Indian real estate sector, credit rating agency ICRA said developers would be able to acquire new projects and ensure healthy launch pipeline.
Commercial real estate sector has witnessed increasing participation by various large global funds and private equity players, buoyed by the gradual recovery in the sector since 2014-15 fiscal, it said. Of late, it added, many of the global institutional investors have also started looking at housing segment favourably. The tie-up with international investors would help real estate developers build a healthy launch pipeline, it said. “The stress in the industry has made available ample of investment opportunities in the sector at attractive rates. With over $2 billion of capital commitment expected under various platforms, the leading developers would be able to acquire new projects thus ensuring a steady launch pipeline over the medium term,” ICRA Ratings VP Shubham Jain said. The equity nature of such partnerships would reduce the burden of providing any committed exit to partners, he added.