NAFIS, Shabbir Husain

Learn, Develop, Share and Grow – Webjournal

Cost of Indian Real Estate will continue to rise.

with one comment

Source The Hindu:

  • The real estate boom of 2006 is set to gain further momentum in 2007 to get India foreign capital of over Rs. 8,000 crore with leading international investors establishing their presence, providing employment opportunities for over two lakh skilled and unskilled people.
  • According to Associated Chambers of Commerce and Industry of India (Assocham), overseas real estate giants such as Royal Indian Raj International, Blackstone Group, Goldman Sachs, Emmar Properties, Pegasus Realty, Citigroup Property Investors, Lee Kim Tah Holdings, Salim group, Morgan Stanley and GE Commercial Finance are likely to bring in all capital of $8 billion with the opening up of India’s real estate sector to 100 per cent foreign direct investment (FDI).
  • Morgan Stanley has already forayed into India’s booming real estate sector in March 2006 through its real estate investment arm, Morgan Stanley Real Estate, investing Rs. 300 crore (around $68 million) in Mantri Developers Pvt Ltd. of Bangalore.
  • Morgan Stanley plans to invest more than $1 billion over the next four-five years in the Indian real estate sector.
  • Tishman Speyer of the U.S. tied up with ICICI Bank to invest $1 billion
  • Efficient regulatory framework and simpler tax regime for the sector are imperative to boost public-private participation and bring in managerial and technical expertise.
  • The biggest U.S. pension fund, CalPERS, hedge fund Farallon Capital Management, US-based developer Tishman Speyer and NRI fund Trikona Capital too have drawn up plans to invest in the booming market.
  • Domestic funds including Kotak Realty Fund, HDFC India Real Estate Fund, Pantaloon Retail’s Kshitij Real Estate Fund and UTI Venture Fund are also active.
  • With the rules relating to investment and repatriation relaxed to a large extent, an estimated 25 million non-resident Indians (NRIs) living in 125 countries, are investing in immovable property in India.
  • Strong economic growth, rising income levels, growing middle class, increasing urbanisation and improving transparency brought resurgence for the Indian real estate sector in 2006 which will continue to grow further in 2007 with easy availability of financing facilities.
  • The chamber forecasts that investment in real estate will go up from $12 billion in 2005 to $90 billion by 2015.
  • Greater integration with the global economy and the increase in domestic as well as foreign investments are encouraging demand for real estate. Despite ill-founded doubts of a bubble, foreign investors are lining up, it observed.

With ever increasing prices of Indian real estate, no better day than today to get hold of a property. The era is very similar to that of mid-90s. It is a builders market again. So if one is looking for a reasonably priced property, chances are it will get even more expensive tomorrow.

Written by shabbirhusain

January 3, 2007 at 4:47 am

Posted in Business, India, Real Estate

One Response

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  1. We are hearing overload of private equity deals and major organizations deploying hundreds of millions of dollar in the region. Where is the room for the little guy?? Is the India real estate market big enough for the small “thousand-dollar” investors coupled with the behemoth “million-dollar” guys?

    If so – how much do we need to get started?


    February 9, 2007 at 4:31 pm

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