PE investments in Indian real estate dropped 12% to $2.3 billion

By Bricksnwall | 2023-10-11

PE investments in Indian real estate dropped 12% to $2.3 billion

Boman Rustom Irani, CMD of Keystone Realtors, which manages the Rustom Jee brand, noted an extraordinary increase in sales within the luxury areas in an exclusive interview with CNBC-TV18.

"We have seen premium and super premium sell like never before," he said.

He feels that increased transparency in the real estate sector has attracted investors. He noted that there is currently a strong investment trend in real estate.

The city's infrastructure expansion provides him hope for the future of this market. According to Rustom, the corporation plans to prioritize the western suburbs and select key metropolitan markets over the next two to three years.

Among the numerous sorts of launches the company is considering, he believes the Mumbai Metropolitan Region (MMR) has the greatest potential reach.

Pockets like Mahim, Matunga, and Dadar will continue to be highly strong growing markets, and Rustomjee intends to expand its presence in these areas.

Because of the forthcoming coastal road, closeness to the sea and the National Park in areas such as Borivali, Malad, Kandivali, Goregaon, and so on would be key growth drivers for Rustomjee in the western suburbs.

When adopting a 10-year horizon for significant expansion, he believes the Vasai-Virar region provides attractive property parcels worth studying.

"We are also very bullish about the Bandra, Khar market driven by the growth of commercial development, in Worli in the Bandra Kurla Complex (BKC) area," he went on to say.

Commercial growth in these areas extends beyond businesses, with lifestyle services increasing. This market will be enriched by a new mall, two hotels, and a variety of hospitality and healthcare businesses. In these areas, Rustomjee's strategy relies largely on research, data analysis, and demand forecasting.

Keystone Realtors shares closed more than 2% higher on the BSE today, at Rs 576.85 a share.

The Nifty Realty Index was the leading sector gainer on October 10, reaching its highest level since 2008. This year, the index has risen by more than 40%. At 11 a.m. today, the index was up more than 1% to 613.85.

According to Adhidev Chattopadhyay, Vice President of ICICI Securities, the Nifty Realty Index's performance reflects restored consumer trust in developers' ability to deliver the correct quality on time.

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