Mumbai, 21 January 2016: International property consulting firm JLL India has partnered with RICS to publish its latest real estate research report on Capital Market trends in the Indian Real Estate sector.
The report 'Peering into 2016: Taking Pulse of Investor Preferences' tunes in to the voice of the investor community to gauge the investment patterns and key investment themes in the Indian real estate for 2016.
According to Ramesh Nair, COO & International Director, JLL India: "Private Equity capital has been instrumental in propelling the real estate boom in India, but it is a sector where banking finance has had its own restrictions to cope with. After a relatively muted CY 2013 and CY 2014, PE investors increased their bets into the Indian real estate sector significantly in CY 2015. This report examines the motivations and expectations of PE funds who are now actively ramping up their exposure into this sector."
JLL carried out a survey of seasoned investment professionals across a number of issues like market fundamentals, successful exits, distressed deals as well as top 3 asset classes and top 3 cities for investment over the next 12 month period. Other issues examined included exploring affordable housing as an investment theme, ideal holding period, share of pure equity deals etc.
On a positive note, a significant majority of investors foresee sales improvement over the next 12-month period. Investors clearly voiced that the refinancing cycle is not expected to meet its logical conclusion in 2016; however the number of successful exits will increase over the next 12 months. The majority felt that while office cap rates will remain the same, the average ROI expectations will actually decrease in this period.
Interestingly, office real estate emerged as the top asset class for investment, with mid-level residential and IT/ITeS office rounding up the Top 3 asset classes for the coming year. Mumbai & MMR, Bangalore and Pune emerged as the Top 3 cities as investment destinations.
Ramesh Nair adds, “Some of the opinions that emerge from the survey undertaken as a part of this report are indeed heartening. Basis the responses, capital flows are expected to increase with newer sources likely to enter the market. Market sentiment is also expected to improve with the implementation of regulations such as RERA”. That said, while there is visible optimism, responses to some of the other questions are more cautious.
Paying an attentive ear to the current sentiment, the report 'Taking Pulse of Investor Preferences' gives a clear line of sight on various aspects that are important to the real estate investor community.
The report 'Peering into 2016: Taking Pulse of Investor Preferences' tunes in to the voice of the investor community to gauge the investment patterns and key investment themes in the Indian real estate for 2016.
According to Ramesh Nair, COO & International Director, JLL India: "Private Equity capital has been instrumental in propelling the real estate boom in India, but it is a sector where banking finance has had its own restrictions to cope with. After a relatively muted CY 2013 and CY 2014, PE investors increased their bets into the Indian real estate sector significantly in CY 2015. This report examines the motivations and expectations of PE funds who are now actively ramping up their exposure into this sector."
JLL carried out a survey of seasoned investment professionals across a number of issues like market fundamentals, successful exits, distressed deals as well as top 3 asset classes and top 3 cities for investment over the next 12 month period. Other issues examined included exploring affordable housing as an investment theme, ideal holding period, share of pure equity deals etc.
On a positive note, a significant majority of investors foresee sales improvement over the next 12-month period. Investors clearly voiced that the refinancing cycle is not expected to meet its logical conclusion in 2016; however the number of successful exits will increase over the next 12 months. The majority felt that while office cap rates will remain the same, the average ROI expectations will actually decrease in this period.
Interestingly, office real estate emerged as the top asset class for investment, with mid-level residential and IT/ITeS office rounding up the Top 3 asset classes for the coming year. Mumbai & MMR, Bangalore and Pune emerged as the Top 3 cities as investment destinations.
Ramesh Nair adds, “Some of the opinions that emerge from the survey undertaken as a part of this report are indeed heartening. Basis the responses, capital flows are expected to increase with newer sources likely to enter the market. Market sentiment is also expected to improve with the implementation of regulations such as RERA”. That said, while there is visible optimism, responses to some of the other questions are more cautious.
Paying an attentive ear to the current sentiment, the report 'Taking Pulse of Investor Preferences' gives a clear line of sight on various aspects that are important to the real estate investor community.