Overseas investment funds raise $30 bn for Indian Property Market

October 6, 2007	(Be the first to rate this story!)  Loading ...
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Around $30 billion are believed to have been invested in Indian property market through foreign funds and institutions, says the report prepared by real estate services firm Cushman & Wakefield.

Investments are believed to have spread uniformly over three broad investment vehicles. A large part of investment is at the portfolio of SPV-level partnership, standing at 40 per cent and 36 per cent respectively.

Since most investors evaluated the market, a number of transactions were structured at SPV level. The private equity market in India has been fast flourishing for the past couple of years with many examples of portfolio-level and entity-level participation both from domestic and cross border investors.

Making investments in a portfolio of properties or at entity level basically diversifies the risk for the investor. However, there is always a risk of projects with low potential to be grouped.

Investors are highly attracted by the allure of townships having seen highest attention with 28 per cent of the private equity investments, adds the report.

News Published Under:   Real Estate India |

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