Real estate is a rare sector in India that has attracted more than a billion dollars in private equity money year after year for the past decade. There is a huge demand-supply gap in the residential market while a fast-growing economy has created a tailwind for commercial and industrial property development, thereby making a case for an investment opportunity.
In 2019, for the third consecutive year, total private capital funding (equity and debt) in real estate sector topped the $4 billion mark, according to VCCEdge. Although the year was marginally softer both in terms of number of transactions and aggregate deal value, compared to 2018, it remained a key contributor to private capital flow in the country.
While a slew of policy initiatives over the past few years have infused a fresh hope. Be it the thrust on providing housing for all by 2022 and supporting measures to boost affordable housing, opening a window for new fundraising and boosting liquidity in the system with Real Estate Investment Trusts (REIT), strengthening the governance process with the Real Estate Regulatory Authority, the sector has clearly been under focus.
Yet, several challenges remain. Residential realty sector is still saddled with oversupply as price points are not matching the demand spectrum. Commercial office space remains the prime driver of investments. To map out the investment and business opportunity in the sector, deliberate on the regulatory norms and what needs to be done, and discuss the emerging themes in the sector, VCCircle is organising its second edition of the Real Estate Investment Summit.