India Real Estate Monitor

A study by Assocham (Associated Chambers of Commerce and Industry of India) says that Real estate sector is predicted to be the best beneficiary of private equity landscape in India. This study is titled as “Private Equity – The Money Tree”. This study says that Real estate sector has been giving average profit margins of 35 percent and even more than 50 percent in some cases. Mr. Venugopal N Dhoot, Chamber President, said, “No one could have predicted that the real estate sector, which attracted nearly $1 million of private equity investment in 2005, would go on to receive $820 million in 2006”. Further he said, “Other promising sectors included information technology, banking and financial services, healthcare and pharmaceuticals”. He added that compared to India, china attracted 50% lower investment from this source in 2007. Looking past figure, in 2006, China collected $13 billion from private equity investments where as India collected $7 billion. Figure got changed in 2007, India collected $17.14 billion. This growth is expected to continue for a few more years.