Bangalore, Jun 29 (UNI) The Indian Real Estate Industry would see big ticket investments from private equity players from abroad, especially in the office space sector as there was a shortage of commercial office accommodation.
Talking to UNI Executive Director Jai Mavani of KPMG India, a global network of professional services firms,whose aim is to turn understanding of information, industries and business trend into value, said there was some 'overbuilding' of properties in the IT sector and this was likely to see a glut in certain pockets.
Talking to UNI, he said ''it can be said with conviction that USD 10 to 15 billion dollars by way of funds were committed for real estate in India in terms of various India-specific private equity funds that have been set up. A major part of these funds will go into building office space as there is a huge shortfall in commercial office accommodation across the country.'' Global economic uncertainties and the rising inflation dogging the Indian economy notwithstanding, investors were not averse to taking equity risks. They were still comfortable in investing in the Indian real estate. There were funds committed for real estate in the country. India specific private equity funds had been set up by some big players, especially in the Middle East, he said.
Commercial space would take the cake with huge new office complexes coming up in the next two to five years. ''During the next five years we will see several millions of square feet of office space coming up in Mumbai alone. Other metros and big cities will see the same pace in development in this sector,'' he said.
Mr Mavani said commercial space could be broken up into IT related commercials like IT parks and SEZs and other office commercials.
In certain pockets, overbuilding was happening of the IT properties like Old Mahabalipuram road in Chennai, some parts of outer Bangalore like Whitefield and parts of Pune. ''There is a belief that there would be over supply of IT space. If the IT sector does not maintain at least the present pace of growth rate, then we may see a glut happening in this space resulting in lesser investor interests,'' he said.
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