NEW DELHI: Indian real estate has emerged as the apple-eye of domestic and overseas investors, as listed and private equity funds are looking to pump in more than Rs32,000 crore in the sector, a new report says.
“The transparency in real estate has contributed to the increase in interest by domestic and financial institutions, resulting in greater availability of financing for developers,” an ICICI Property Services-Technopak paper said.
This has proved to be the right impetus for listed funds such as Hiranandani Group’s Hirco, Unitech Corporate Parks, Indiabulls’ Dev Property Development. A host of others like Trinity Capital, Yatra Capital and West Pioneer Properties among others have raised around Rs11,000 crore from overseas markets, mainly London, the report said.
Another Rs21,000 crore has been raised by domestic and global private equity funds. These include local funds like Urban Infrastructure Opportunities, Solitaire I, IL&FS Realty, India Advantage Fund, HDFC Real Estate, Kotak India Real Estate I, Kshitij Venture Capital and Anand Rathi Realty.
Besides, a slew of international funds like JP Morgan India Realty, Peninsula Realty and Horizontal International are also interested in realty projects.
While the government has smoothened the process of money pooled overseas to be used in real estate in the country, the bigger fillip has come in form of allowing 100% foreign direct investment (FDI) under the automatic route that can be used to develop townships, housing, built-up infrastructure and construction development projects, subject to conditions.