Realty sector in India witnessed a deep fall in the investment by Private equity firms in 2012. Realty sector currently faces faded interest of private equity firms.
A leading global accounting firm Grant Thornton reported that the private equity firms have lost their interest in the realty sector and infrastructure. In 2012 nearly $ 7.4 billion was invested by the private equity firms. Compared to the $ 8.8 billion private equity investment in the year 2011, the investment of 2012 is lower.
There was a fall by 15% in the last year, the Grant Thornton report added. Interestingly this 15% fall occurred while there was a 0.4% rise in the number of private equity investments in 2012.
However the increased number of PE investment did not help up as there was no bigger amount of investments. On the other hand the invested amounts were lower compared to that of previous years.
Despite the fall by 15% in the last year, Grant Thornton remains highly hopeful in the current year. Central Government has initiated some positive steps to bring the investors back to India.
The positive steps were initiated in the last quarter of 2012. As a result these steps could not have any impact on the investment in the just-gone year.
India is expected to receive better amount of investment, said Mr. Harish HV of Grant Thornton India. He was speaking to the media persons. He opined that there would not be a big rise in the number of private equity deals. But there would a good increase in the amount of private equity investment in the realty sector this year, added Mr. Harish optimistically.
The amount of investment fell sharply in all the sectors. However this was highest in the infrastructure sector which witnessed a fall by 59%. Realty sector faced 33.4% of fall, the second worst fall. The investment in the banking and financial services sector fell by 15.7% and this sector remained the third biggest losers.