Private equity investment in India’s real estate sector declined by around 20.2% to $831 million (about Rs.3,740 crore) in the first five months this fiscal due to sluggish demand.
Factors like tight availability of funds with PE players and delays in project execution prompted fund houses to adopt a cautious approach toward the real estate sector, according to data compiled by research firm Venture Intelligence.
PE players had pumped $1,041 million (around Rs.4,685 crore) into realty in the same period last fiscal.
“Funding through PE route is lower compared to last year, as fund houses are cautious about investing in realty due to a dip in general demand and uncertainty over timely completion of projects,” said Om Chaudhry , CEO of Fire Capital.
