Private Equity (PE) Funds Rising In Delhi NCR Real Estate

Sep 13
08:53

2014

Yamin Raj

Yamin Raj

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The NCR-especially Gurgaon and Noida-has always been one of the strongest residential markets for India, driven by affordable pricing and a multitude of product offerings that are available for buyers.

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The Private Equity (PE) INVESTMENT in the actual estate market of Delhi-NCR is expected to go up by around 50 percent,Private Equity (PE) Funds Rising In Delhi NCR Real Estate Articles in the presence of new government. The real estate professional opined, that investment in the real estate sector has been sluggish, however the segment is expecting immense surge in post election scenario. The investment sentiment of most institutional investors about the NCR continues to stay upbeat. The NCR regions especially Gurgaon and Noida has always been of the strongest residential markets for India, driven by affordable pricing and a sizable number of product offerings that are available for buyers.

Delhi-NCR will continue to see increase investments in to housing due to the strong demand drive in the region, coupled with the fact that Delhi as a metropolitan city does not generate any significant housing supply in the mid-market segment, leading to a spill-over of such demand in to the peripheral locations of Noida and Gurgaon. Today the PE money is around 10% of the net actual estate market liquidity in Delhi-NCR. Now post election it is expected to increase around 50 to 60% in year, provided there is rise in the investments. For private equity funds, NCR property market is regarded as of the preferred choices. Indian real estate sector has gained an increase of 28 % as compared to the earlier quarter and 2.5 times the equity investment in first quarter of 2013, as per the document by Cushman and Wakefield. Delhi NCR actual estate has already attracted private equity investment of Rs.80 Cr in Q1, 2014. No doubt, pretty valuations and low level of bank funding to the sector has played their part.

With affordable property prices, Delhi NCR region has always been a powerful player in Indian real estate. Noida and Gurgaon would be the major beneficiary of the PE investments in Delhi-NCR. Gurgaon, Sohna Road and Noida would be the preferred area for the PE investors in Delhi-NCR.Major destinations for PE investment of NCR will be Noida, Greater Noida (west) Yamuna expressway and Ghaziabad. Formation of a stable government has made a positive impact in helping the revival of the general sentiment of the actual estate sector. The matter of fact that, only housing sector at this moment has the capability to turn around the weak macro-economic sentiments & revive demand.