Global real estate consultancy firm Cushman & Wakefield estimates that private equity (PE) investment in real estate in India is likely to exceed Rs 12,000 crore (approximately $2 billion) by the end of 2014.
The first half of the year saw PERE investments of around Rs 4,100 crore, which was more than double the Rs 1,650 crore in H1 2013. In the second half of 2014, the investment is expected to touch Rs 7,900 crore, C&W said in a press release.
The first six months of this year have recorded the highest levels of investments during the first half of any year since H1 2009 (Rs 4,950 crore). The total number of deals increased to 28 compared as against 13 in H1 13; even the average deal size increased by 16 per cent to Rs 146 crore ($24 million).
With investment of Rs 2,357 crore, the residential segment accounted for nearly 60 per cent of the overall investments. Investments in the purchase of leased office assets stood at Rs 1,435 crore. Close to Rs 9,870 crore has been invested in the commercial office sector since 2011 to June 30, 2014.
Bangalore witnessed the highest levels of transaction activity in the first half of this year with investments of Rs 2005 crore. In H1 2013, it saw investments of just Rs 103 crore.
PE investments for Mumbai have increased nearly three times over the same period of last year, while transaction volumes in NCR and Pune were at Rs 580 crore and Rs 167 crore respectively.