Improved transparency, regulatory easing sees realty project-level investment surge by $3.3 b

Improved transparency and a new regulatory regime in the real estate sector has tripled project-level investment to $3.3 billion in the past two years.

“The improved regulatory changes led to new focus on comfort and credibility among the investors. The investments mainly led by private equity (PE) remained largely to the individual project-level,” said Shobhit Agarwal, MD & CEO – Anarock Capital.

“This approach was in evidence in 2015-2018 period as well, wherein about two-third of PE investments in Indian real estate were at the project-level. Of the total $14.01 billion PE funds in real estate over the last four years, more than $4.4 billion were infused at the project-level,” he added. “Currently in Bengaluru, project-level investment is mainly driven by NRIs and NBFCs through bulk purchases.