Private Equity (PE) investments in Indian real estate market increased by more than one third during the period January-June 2018. The investments increased from ₹17,200 crore in 2014 to ₹59,100 crore in first six months of this year recording a growth of 36%, reported Knight Frank.

Much of the PE investments were into commercial real estate, with Mumbai capturing 40% of PE investments into office assets in India.

Our Take

The reforms and policy initiatives in this sector have resulted in manifold growth in the Indian real estate's attractiveness. Policy advancements have reduced the risk factor, resulting in a stronger market sentiment. Commercial real estate prices tend to gain momentum with a probable impact on the residential markets.

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