Residential realty struggles as private equity firms focus on commercial

Private equity firms turn cautious after Rera, GST implementation

Private equity (PE) firms seem to be shifting their focus from residential to commercial real estate after a slew of reforms, such as the Real Estate (Regulation and Development) Act, or Rera, and the goods and services tax (GST), were implemented last year.
 

The share of the residential real estate segment in PE investments dropped dramatically from 59 per cent in 2016 to 35 per cent in 2017 (until November), according to property consultancy Anarock Property Consultants.

Commercial real estate, especially the information technology (IT) and IT-enabled services segment, remained the focus area of institutional investors, and its share in