RCA in the commercial property press:

Growth in India Spawns Property Funds Focused on the Subcontinent

Bloomberg reports: In a vote of confidence for India’s commercial property market, investors have begun setting up equity funds to raise investment capital for the rapidly-growing subcontinent. In a recent article on Bloomberg, Kathleen Chu referenced data from Real Capital Analytics’ Global Capital Trends report to state that, “Total real-estate transactions in India rose 17 percent in the nine months ended Sept. 30 from a year earlier."

She went on to profile one such equity fund opened by former-Citi Property Investors manager Ravi Hansoty, who is extremely bullish on property opportunities for equity buyers in India. Mr Hansoty aims to raise $350 million over the next year to invest in apartment and hotels, as well as land to build such properties on in India’s major markets. He is also looking to use the funds to acquire other underperforming funds that focus on Indian property investment. “Home ownership is extremely low in India” he stated in a telephone interview with Bloomberg, and as for hotel opportunities, Mr Hansoty added, “In that segment, there are very few hotels which have branded, meaning you have a recognized brand which one can relate to…Given the size of the country, there is plenty of opportunity to do that in multiple cities.”

Ms Chu went on to detail the potential for growth in the Indian hotel market, as well as some of the challenges faced by those hoping to see spectacular returns right away on their investment. Nonetheless, with consistently remarkable GDP figures and a stable governmental structure, the opportunities in India are luring investors in from around the world.

Articles related to this topic:

 Dr Chandan's Notes From Abroad: India
 Global Commercial Property Recovery
 APREA-RCA Report Shows Asia-Pacific Commercial Property Rebound
 London Leads Commercial Real Estate sales for Second Year in a Row

Posted by: Nina Turner

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