Close to Rs1,00,000 crore (around $16 billion) by private equity funds is locked in the fund-starved real estate sector as hundreds of projects get delayed across the country and investors struggle for an exit.
Over and above, investments worth around $1 billion are waiting to be deployed in the sector as the fund managers continue to scout for "quality" projects to ensure a steady cash flow for their investors.
The sector now pins its hopes on a stable government in New Delhi that could drive up the market and bring in a new policy framework.
Ever since banks dropped developers from their client list a few years ago and reduced exposure to the "risky" real estate sector at the behest of the RBI, the sector has been at the mercy of private equity (PE) funds. The PE players raised huge funds from the domestic market as well as foreign (offshore) markets promising their investors attractive returns. In return, developers who sourced funds from PE players are doling out a steep 20-30% interest to the funds, making their projects expensive.
with thanks : DNAINDIA : LINK : for detailed news.
Excellent and helpful post. I am so glad to left comment on this. This has been a so interesting read,would love to read more here. You can also find best place to set up your office in IT Park is getting easy in Wardha IT Park. Wardha IT Park is the Best location within the state of Maharashtra due to its great connectivity and easy accessibility. For fruther Information about office building for lease in India Visit
ReplyDeleteus Today.