Emerging Real Estate Market in Bangalore
According to a recent survey, Bangalore, the country’s emerging real estate market, received the highest private equity (PE) investment during the first half of the year. The city attracted nearly Rs 2,000 crore, with a strong demand for leased office assets from investors.
PE Investment Growth
The PE investment in Bangalore rose by 80 percent to Rs 1,990 crore during the first three quarters of 2013, compared to Rs 1,106 crore last year. This considerable increase is attributed to a commitment by a free fund into a platform focused on leased office assets.
Key Factors Driving Investment
Several factors contribute to Bangalore's emergence as a top destination for PE investment:
- IT Hub: Bangalore is a well-known IT hub and the capital for southern India.
- Developers' Profile: The city boasts developers with strong profiles.
- Property Availability: The availability of properties across various segments at reasonable valuations also plays a significant role.
Major Developers in Bangalore
Some of the major developers operating in the IT city include:
- Sobha Developers
- Puravankara Projects
- Prestige Estates
- Brigade Group
PE Investment in Other Regions
According to a report, PE investment in Pune jumped more than three-fold to Rs 800 crore during the January-September period, compared to Rs 256 crore in the same period last year.
The National Capital Region’s (NCR) property market received Rs 650 crore as PE investment, a 22 percent increase from Rs 550 crore during the period under review. All investments in NCR were directed toward residential assets.
In contrast, Mumbai, which typically attracts substantial investments, witnessed a 45 percent dip in PE investments this year. The financial capital received Rs 730 crore during the first three quarters of 2013, compared to Rs 1,269 crore in the previous year.
Overall PE Investment
Despite the slowdown in the realty market, overall PE investment in the real estate sector grew by 27 percent to Rs 4,779 crore in the first nine months of this year.