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PTI 09 Aug 2018, 02:39 PM India

The real estate sector received an

investment of around Rs 24,011 crore in the first half of 2018

due to rise in buyers' confidence on Rera implementation and

improving capital values, a report said.

IT parks and commercial real estate got the biggest

investment share of USD 2,000 million or around Rs 13,151

crore, followed by retail real estate at around USD 300

million or Rs 1,898 crore, the joint report by industry body

CII and property consultant JLL said today.

"In the first half of 2018, total investments in the

sector stood at USD 3,616 million or around Rs 24,011 crore,"

the report said.

The year 2017 witnessed some large deals between

institutional investors and Indian companies, with private

equity investments in real estate touching USD 44 billion,

according to the report.

"We anticipate investment flows will continue on a

healthy course. This has been substantiated by the H1 data of

2018 with cumulative PE investments crossing USD 45 billion,"

it said.

Home sales velocity in the first half of 2018 rose by

25 per cent year-onyear, which according to the report can be

attributed to returning buyers' confidence on account of

implementation of Rera in most states and stable capital

values, which have started to show an upward trend.

JLL India chief executive officer and country head

Ramesh Nair said this has been the trend despite the fact that

the Reserve Bank of India has increase the repo rate in its

August monetary policy review, making home loans dearer.

"As more and more developers register with Rera, we

anticipate residential markets to pick up pace," he added.

The first half of 2018 saw corporate leasing activity

rise by a 54 per cent year-on-year, driven by large technology

companies, co-working, financial services and global in-house

data centres.

Companies leased around 24 million sq ft of office

space in the first half, around eight million sq ft more than

in H1 2017, according to the report.

Bengaluru and NCR contributed the most to this growth,

with a 26 per cent share each.

"This trend... is a reflection of the current thriving

business environment. Occupiers are not only inclined towards

space take-up as part of their consolidation/relocation plans

but also geared towards expansion-driven space strategy which

points towards an upswing in the business cycle," said Nair.

In the retail real estate sector, net absorption rose

over 75 per cent to 1.9 million sq ft in H1 2018.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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