Residential realty awaits $1-bn infusion

In view of the availability of multiple sops in the residential real estate sector including attractive rate of returns averaging at a high of 20-22% per annum, the residential real estate in the country is all set to get investment worth $ 1 billion in the new financial year, said industry expert.

Private Equity funds in Indian real estate sector have already raised USD 420 million in the first two months of this year as compared to USD 520 million raised during the whole last year, said executive vice chairman of the Mumbai-based Milestone Capital Advisors, Rubi Arya, elaborating that mid-segment housing and affordable housing can take returns to as high as 20-22% per annum through hybrid investment that is capital security plus equity upside. With the Real Estate Bill mandate, availability of deals for Private Equity firms will certainly go up and moreover, the reforms in the real estate sector will also help further accelerate fund raising and investment opportunities both in residential and commercial sectors. With these positive developments, the India story is growing by leaps and bounds and it is just a matter of time when this sector begins its upward journey, albeit belatedly, after a prolonged period of gloom, she added.