Realty sector attracts Rs 16K cr investment in H1 2017

New Delhi: Real estate sector witnessed an investment of over Rs 16,000 crore in the first half of 2017, of which 56 per cent was in housing and township projects, according to property consultant JLL India.

The investment figures include both debt and equity. “In 1H, 2017, residential projects (including townships) across India attracted 56 per cent of the total investment, i.e. more than Rs 9,000 crore out of the total Rs 16,008 crore,” JLL India MD (Capital Markets and International Director) Shobhit Agarwal said. IT and commercial projects received 22 per cent of the total investment at Rs 3,500 crore, followed by warehousing at 20 per cent of the total investment.

The retail sector attracted only 4 per cent of the total investment in absence of quality mall supply.

“While the office asset class saw lower investment in 1H2017 compared to 1H2016 due to a lower number of equity deals, there are big-ticket deals in the pipeline that are expected to fructify in 2H2017,” Agarwal said in a blog.

Housing segment saw increased investment on growing confidence in this asset class after the implementation of the new real estate law (RERA) and other initiatives.

Warehousing segment saw the biggest investment deal so far in the countrys logistics space, Agarwal said, referring to the Canada Pension Plan Investment Board (CPPIB)s deal to buy a majority stake in IndoSpace, the warehousing and logistics real estate arm of Everstone, in a USD 500 million pact.

“It is pertinent to note here that even though CPPIB may be the biggest deal so far, investors from other nations, especially Asian ones like China, Japan, Korea, have shown a lot of interest in developing industrial projects,” Agarwal said.