bangalore private equity investments in the indian real estate sector have seen a drop of 15 per cent in the first three quarters of calendar year 2012 compared to a year ago this year has so far seen investments of close to rs 3500 crore across residential and commercial property segments compared to rs 4110 crore in the same period last year said property advisory firm cushman wakefield concerns on government policy front coupled with uncertain investment scenario have led to the fall in number of deals however recent policy initiatives should turn around things in the coming quarter and make up for the shortfall says sanjay dutt executive md south asia at cushman wakefield the first three quarters have seen 23 deals being concluded by domestic and foreign private equity funds the first quarter of the year saw the maximum action with rs 2100 crore being invested in real estate while rs 1380 crore was invested in the remaining two quarters while the second and third quarters depict a drop in investment volumes the real estate sector continues to attract steady investments during the year the transactions are more realistic now expecting posttax return of around 20 per cent says dutt some of the transactions that were concluded during the first three quarters included the rs 4646crore investment by morgan stanley in sheth developers group housing project ask properties investment of rs 100 crore in godrej landmark developers government of singapore investment corporations 105crore investment in brigade enterprises hul land deal and blackstones rs 875crore investment in manyata embassy business park private equity funds do not have too much appetite to take development risk as many projects have got delayed while margins remain under pressure says om chaudhry ceo of fire capital which aims to invest up to rs 400 crore in the next financial year