Mumbai: With India emerging as an attractive investment destination, private equity inflow in real estate is likely to reach $100 billion (nearly Rs 6,37,772.5 crore) by 2026, a recent survey says.
According to Deccan Herald in the next 10 years, private equity inflow in the sector is likely to grow at 10% CAGR to $100 billion by 2026, with Tier-I and II cities being the prime beneficiaries of it. In the past 12 years (2006-2017) India has seen investments of $42 billion (nearly Rs 2,67,864.5 crore), while the next 10 years (2017-2026) is expected to see inflows to the tune of $58 billion (nearly Rs 3,69,908 crore), the report said.
“India’s attractiveness as a global investment destination has been steadily rising. We have seen numerous measures that have created a positive economic environment, bringing in key factors like transparency, accountability and ease of entry into various sectors in India. This gives India a fillip in attracting capital,” .
These initiatives would be the key factor for private equity to bet big on the sector in future. “We will see the flood gates open the time REITs are listed in the market. This would give the developers an option to exit or convert their holdings in to tradable stocks, through income generating assets. Further, with the current size of the economy and its steady growth with GDP pegged over 7% Year-on-Year for the next 35 years,”
Private equity inflows for the last three years in office and IT/ITES have risen by 150%.