JLL India Releases New Report 'Real Estate Private Equity 3.0'

MUMBAI, November 18, 2015 /PRNewswire/ --

Fund Raising now Focused on Residential Real Estate; Number of Diversified Funds Visibly Reduced 

Leading international real estate consultancy JLL India has released its latest research on the Indian real estate sector, dealing with how private equity (PE) into the country's property sector has changed over the years - and the current status on this front. The report 'Real Estate Private Equity 3.0' points out that PE players are now raising funds for specific real estate asset classes like residential, unlike the earlier modus operandi of raising diversified funds.

Anuj Puri, Chairman & Country Head, JLL India said, "There has been a clear increase of focus among investors about where they want to invest their funds in. During 2007-08, investors left no stone unturned to participate in India's economy and real estate growth story, and invested across all possible asset classes. In the same period, 66% of funds were diversified. The share of such funds has reduced to negligible levels, post-2014. In contrast, residential-focused funds have increased to 85% today from the then measly figure of 14%. These two trends show that the investment approach of investors has changed from weighing every asset class on the opportunity it presented to becoming residential-focused, as this asset class has given maximum returns over the years."

Investment activities pick up  

From 2014, Indian real estate has witnessed PE investments worth USD 2.2 billion. This is even before taking into consideration platform level deals which are worth USD 2 billion. When we compare the quantum of activities in last 18 months to investments between 2009 and 2013 that were worth USD 3.9 billion, this uptick is clearly evident. Per year investment has increased by two times.

As PE funds mature, they become selective  

Between 2005 and 2008, investments were not only seen across all real estate asset classes but investors also invested in Tier-II and Tier-III cities. As many as 30 Indian cities enjoyed investment during this phase. Post this phase, however, the selection criteria has gotten stricter and due diligence has increased - displaying a maturing of India's real estate PE industry.

From 2014, it is largely the developers with very good track record that have managed to attract investments. At the same time, investors have restricted themselves to seven-eight cities only and a considerable portion of investment has gone into residential and office assets - showcasing a clear focus among the investors.

Click here to download the report 'Real Estate Private Equity 3.0'

About JLL 

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $57.2 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit http://www.jll.com

JLL has over 50 years of experience in Asia Pacific, with over 31,100 employees operating in 83 offices in 16 countries across the region. The firm was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards and won 'Best Property Consultancy' in seven Asia Pacific countries at the International Property Awards Asia Pacific 2014. For further information, visit http://www.jll.com/asiapacific

About JLL India 

JLL is India's premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 8000, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India at the International Property Awards Asia Pacific 2014-15. For further information, please visit http://www.joneslanglasalle.co.in

Media Contact:
Arun Chitnis
[email protected]
+91-9657129999
Head - Corporate Communications & Media Relations
JLL India