India: Private equity inflows into realty jumps 62% in 2016

Amid demonetization woes and its impact on real estate, 2016 marked regulatory changes that instilled greater investor confidence in the sector. Private equity (PE) inflows into real estate grew 62% from the a year ago, with total inflows at Rs 38,000 crore. Equity instruments gained traction, growing 29%. Although commercial leasing growth has been very strong and residential unit sales are still shaky, PE flows into the latter was about 1.7 times that into the former.