Realty Investments Of Tier-II, Tier-III Cities Tower Over Metros: Report
Investment into retail real estate of Tier-II and Tier-III cities is more impressive when compared to metropolitans, according to property consultant firm JLL India.
"With retail assets becoming more lucrative, thanks to the impending launch of real estate investment trusts (REITs), the period between 2015 and Q3 2017 saw an astonishing 54 per cent of over $1.57 billion investments in retail real estate happening in Tier-II and Tier-III cities, well exceeding those in the metros," JLL India MD, Retail Services, Pankaj Renjhen said in a statement.
This includes entity-level deals, platform deals and acquisition of stakes in malls.
Some of the global private equity funds had been investing in the retail real estate sector to diversify their investment portfolios in India, Renjhen said.
Apart from Mumbai, investment largely took place in cities such as Pune, Bengaluru, Amritsar, Indore, Ahmedabad and Chandigarh, the consultancy said. Investment by private equity (PE) funds in retail real estate assets would also bring a structured approach to leasing, leading to a more regular performance evaluation of brands within malls, it said.
As retail assets could become a part of the REIT portfolio, options for exits opened up, which enhanced the liquidity of such retail assets, JLL said.
With inputs from Housing News