India Real Estate Monitor

Increasing interest rates and a declining demand may dent the realty market in India. However, the long-term forecasts for the sector continue to be good, senses the industry.
At a seminar on the real estate market in India here on 27th June, most of the realty players confessed that there was a liquidity crunch due to the increase in interest rates. However, this is not going to discourage long-term investors from investing in India, they added.
Termed as “Elephant Investors,” these investors such as pension funds and endowment funds are just waiting in the groups to enter the Indian market, said A. V. Kapoor, managing director of Saffron Asset Advisors Pvt Ltd.
“There are around 21 India-dedicated real estate funds that are raising money in the international market. In the next 9 months, I believe nearly $7 billion will be entering the country through different India-dedicated funds,” Kapoor said.
“While long-term players are look at India, small-term players based in the US & Europe, for example the hedge funds and private equity players, are further interested in their local markets,” said Alex Hayim, director of REIT Property Management India.