While the realty index on the stock market took a beating today, the Indian property market has a reason to cheer. The real estate sector witnessed an inflow of about $6 billion (Rs 26,900 crore) from global private equity players during the past one year.According to a report by global realty consultant Cushman and Wakefield (C&W), PE funds struck 79 deals in the country during August 2007-August 2008 amounting to $6 billion, a rise of 100 per cent over the same period a year ago.The amount received has been evenly distributed among SPV and portfolio level attracting a total investment of Rs 10,000 crore each, while that of entity level was at about Rs 6,970 crore, the report ‘The Metamorphosis – Changing dynamics of the Indian Realty Sector’ said.“The commitments by PE funds clearly indicate investor confidence in the Indian market scenario. While we have seen a dip in total amount committed in the second quarter of 2008, the wait and watch approach by the PE funds scouting for the opportune partner will force Indian developers to re-work their valuations and construction timelines to make them more reasonable,” C&W India Joint Managing Director Sanjay Dutt said. PE players have also increased their internal rate of return expectations from projects, he added.
