Reuters

Mumbai: Inflows into India’s realty firms dropped in the June quarter, though overall investment by venture capital funds and foreign capital investors in the country rose a modest 2.2% to Rs323.8 billion, latest figures show.

While flows into real estate fell nearly 14% to Rs62.86 billion, biotechnology also took a hit, with investments contracting by a tenth to Rs3.46 billion, data on Securities and Exchange Board on India’s website showed on Tuesday.

Real estate firms in India have seen a slowdown this year as interest rates — at a decade-high — have combined with high property prices to turn away middle-class home buyers.

The sector has also been hit by a cash crunch due to the IPO market drying up and restrictions on bank funding, triggering a fall in stock values.

The BSE Realty index is down nearly 60% since the start of the year. Shares in real-estate firms such as Parsvnath Developers Ltd and Indiabulls Real Estate Ltd have lost 72.2% and 59.7% respectively.

Media and entertainment sector attracted Rs6.72 billion, up 41.5% over the preceding quarter. The sector has been able to attract investments with the promise of robust revenue growth driven by the emergence of a wealthy middle class.

Research firm Media Partners Asia estimates annual revenue for television to more than double to $11.6 billion by 2012.

News Corp chief Rupert Murdoch said on Monday his firm would launch channels in six Indian regional languages over 12 months, and expand its presence in movies, and the digital and mobile space.

Services and industrials also saw a double-digit rise in investment flows, the data showed.