Real estate sector in India has witnessed more than $2-billion private equity investments in the last 12 months, with investors treading cautiously, according to real estate consultancy Cushman & Wakefield.
However, the pattern of investments has changed with the focus on projects nearing completion and also into leasing with selective focus on the retail sector.
Addressing a press conference here today, Sanjay Dutt, Executive Managing Director of Cushman & Wakefield India, said the real estate market has begun to look up after a subdued period. Though it has not reached the highs witnessed in 2006, there is growing interest again in investing in India.
“In an economy growing at about 6.5 per cent and now projected to touch 7 per cent, our interaction with global investors is that they are keen to invest. But they are becoming extremely selective, both in terms of developers and the city,’’ he said.
Rents are firming up, cost of property is gradually going up and the demand is picking up both in office space absorption and residential. However, when it comes to retail, companies are in a consolidation mode, reassessing their strategies and focussing on high street areas to locate their stores.
Referring to Hyderabad, Naveen Nandwani, Director, South, C&W India, said the office pre-commitments in 2012 is likely to go up by 48 per cent over last year.
The recent judgment with regard to Knowledge Corridor and the Government move to relax GO No. 45, which makes it mandatory to provide space for weaker section housing, will also boost activity, he said.
Hyderabad is an attractive market for investment as prices are low, Nandwani said.