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Real Estate Act, 2016- Fostering the growth of Private Equity Investments?
EXCERPTS
INVESTMENTS IN REAL ESTATE SECTOR
The real sector in India comprises of both organized and unorganized players (Refer to Exhibit-III Structure of Indian Real Estate Sector). The sector occupies a significant role in the economic prospects of India. It is the second largest contributor of employment after the agriculture sector. With a contribution of 7% to the Gross Domestic Product (GDP) of the country, the real estate sector is expected to grow at a rate of 30% per annum over the next ten years (2015 to 2025) . The growth and development of the sector also directly and indirectly impacts business prospects and employment opportunities across 250 ancillary industries like steel, cement, paints and consumer durables, etc... |
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GROWTH OF PRIVATE EQUITY INVESTMENTS
Apart from being a major source of financing in the real estate sector, the private equity segment also faced the impact of economic crisis. The fund raising activity of private equity funds during the period 2009 to 2011 remained challenging, as there were only limited investments from private equity funds during the period. It was in the year 2012, once the economy started witnessing the growth that the private equity funds rose to the occasion and started financing projects, mainly the domestic private equity funds...
OPPORTUNITY AND THE FOCUS
With an estimated market value of US$180 billion by the end of the year 2020, the Cumulative Annual Growth Rate of the real estate sector was estimated to increase to 11.2% during the period 2008 to 2020...
EXHIBITS
Exhibit-I: Key Provisions of Real Estate (Regulation and Development) Act, 2016
Exhibit-II : Trends in Private Equity Investments in Indian Real Estate Sector
Exhibit-III: Structure of Indian Real Estate Sector
Exhibit-IV: Sources of Financing in Real Estate Sector
Exhibit -V: Classification of Private Equity Investments- (January-August 2015)
