Kotak Investment plans to complete the fund-raising by the end of this year. After this, preparations are being made to start investing in residential property from the year 2023. For this investment will be made in the real estate market of 5 cities of the country.
Asia’s richest banker Uday Kotak is in a new preparation. their next preparation real estate Big investment in the market. They can invest 1 billion dollars (about 82 billion rupees) in the residential market of 5 cities of the country. Kotak Investment Advisors Limited will raise funds for this investment. This information has been given in media reports.
In Kotak Investments, Abu Dhabi Investment Authority will invest $500 million in a property fund, while Allianz SE will invest $220 million. Kotak Investments is also in talks with other investors to raise funds. Kotak Investment plans to complete the fund-raising by the end of this year. After this, preparations are being made to start investing in residential property from the year 2023. For this investment will be made in the real estate market of 5 cities of the country.
Big boom in property market
India is one of the countries in the world where the property market is witnessing a big boom during and after the corona pandemic. Especially the demand for big houses has increased. During Corona, people realized that if there are big houses, then social distancing can be followed even inside the house. During the epidemic, it was also seen that the interest rates of loans were very low, which people took advantage of. This saw good demand in real estate. Home sales increased during this period.
However, the real estate market is showing signs of a slight softening as the Reserve Bank has started increasing the repo rate after rising inflation. This has made home loans costlier. Last month, the Reserve Bank simultaneously increased the interest rate by 0.50 percent, due to which its rate has reached 5.9%. This was the fourth hike by the Reserve Bank and since May this year, there has been an increase of 190 basis points. A report shows that in the second quarter of the financial year in 9 major cities of the country, the purchase of houses decreased by 7 percent. This is compared to the last three months.
Kotak Group Planning
Kotak Investments was established in the year 2005 which is a part of Kotak Mahindra Group. According to a website, this capital company has so far raised funds of Rs 6.3 billion from different funds and platforms. In June this year, Kotak Investments along with ADAI set up a $590 million platform with a focus on property investment. Kotak Investments has so far raised or managed Rs 2.8 billion in its real estate fund series.
Kotak Investments is the company of Uday Kotak who founded Kotak Mahindra Bank in Mumbai. This bank provides commercial and investment banking facilities. Along with this, Kotak Bank also provides insurance and brokerage services. According to the Bloomberg Billionaires Index, Kotak’s net worth is $13.9 billion and he is the 9th richest person in India.
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