Bangalore real estate market is vying ahead in luring private equity investors. Many sources say that several deals that tops about Rs.60 crore ($10 million) in the sector have been clinched or are in progress phase of concluding.
In the previous year, Bangalore realty market engrossed a huge share of private equity beating all other metro markets in the country and almost attracted a share that is three times the investment received by Pune, which was ranked second.
One of the sources says that a major firm has closed above Rs.100 crore ($17 million) dealings in equity with one of the chief property develop and builder in the firm hold a 49 per cent of share in an upcoming residential project of the developer, which is located beside Old Madras Road. Another top developer has got about $10 million deal from one of the PEs.
The source also added that one of the private equity with assets of Rs.3200 crore is in discussions with one of the property developer for over $10 million funding deal. One of the major property developers says that private equity investors are vigorously looking for opportunities to invest in southern residential markets of Bangalore and Chennai.
The real estate market of Bangalore and Chennai is witnessing a robust concentration of residential units due to the job opportunities the city has created this is justified with both metros collectively absorbed over 12 million sq. ft. of fresh office space previously.
Bangalore alone has witnessed absorption of residential units largely due to the steady price and a growth of 15 per cent to 20 per cent. One of the property consultants says that concentration and capital value appreciation of properties are same in Bangalore, which is in contrary with other two big markets of NCR and Mumbai.
In last 2 years, the growth in absorption of residential units has been sluggish due to the rise in property prices by 50 per cent to 60 per cent. Hence, private equity investors are enormously vigilant with both markets due to the piling up inventory.
Bangalore’s resilient housing market is due to the remarkable growth in returns and profit witnessed by the registered city-based major developers in the last quarter of the previous year. The report showed that Nitesh Estates witnessed about 319 per cent increase in revenue and 7 times rise in net profit and Sobha Developers reported a revenue and profit growth of 26 per cent and 10 per cent correspondingly.
Hefty investments from private equity
Many top dealings from top builders and major private equity investors have been concluded or in the stage of closing. Bangalore has witnessed a growth of 15 per cent to 20 per cent in concentration of residential units in the last two years and has reported remarkable return and profit in the Oct-Dec quarter.
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Bangalore real estate market is vying ahead in luring private equity investors. Many sources say that several deals that tops about Rs.60...
