The real estate sector recorded ₹2,800 crore private equity investments during the first quarter, an increase of 28 per cent compared with the previous quarter and nearly 2.5 times the investment in Q1 2013, according to real estate consultancy Cushman & Wakefield.

In its report on private equity investments in real estate, it stated that the rise was due to increasing investments in leased office assets by both foreign and domestic funds given the potential of stable yields and attractive capital values.

The office and residential segments recorded ₹1,435 crore and ₹1,065 crore investments respectively, contributing close to 51 per cent and 38 per cent, respectively.

Eighteen deals were recorded in the first quarter with average deal size up by nearly 35 per cent to ₹156 crore.

Bengaluru topped with investments of ₹1,905 crore, an increase of 45 per cent compared with the previous quarter. Transaction volume in Mumbai was up 22 per cent over the previous quarter to ₹470 crore. National Capital Region and Pune registered investments of ₹345 crore and ₹80 crore, respectively.

Sanjay Dutt, Executive Managing Director — South Asia, Cushman & Wakefield, in a statement said: “A number of funds have committed funds towards investments in Indian real estate, which is expected to translate into increasing transactions in the sector, especially in income-yielding assets.”

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