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Construction : Web Exclusive | March 2013 | Source : Construction Update

India gets Rs 19,000 cr overseas investment in real estate

In 2012, India received a volume of Rs 19,000 crore investment and ranked last among the top 20 real estate investment markets globally. This was the finding of real estate services firm Cushman & Wakefield’s latest report International Investment Atlas. China remained the largest global investment market overall thanks to the surge in land sales seen in late 2012.

The US was at the second position followed by the UK. Institutional sales formed the majority of the investment in India (67 per cent) while remaining was through private equity (PE) investments. The market witnessed institutional sales (excluding apartments) of Rs 12,800 crore, concentrated in commercial development sites and office segment including, stand-alone and pre-leased office buildings.

While investments in institutional sales declined 37 per cent over last year, private equity investment in India increased seven per cent in 2012 and was worth Rs 6,200 crore, the report said.

In terms of value, majority of the private equity investments were seen in ready income generating/operational office assets at Rs 3,230 crore, up 34 per cent over 2011. Under-construction residential projects continued to see the highest number (25) of private equity deals in 2012 and were worth Rs 2,850 crore.

Sanjay Dutt, Executive MD, South Asia, Cushman & Wakefield said that investment in ready income generating/operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment.

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