Latest Property News on 'Foreign Direct Investment in India'

Assocham Predicts $30 bn FDI in Indian Realty Sector within a Decade

Industry body Assocham said that Foreign Direct Investment in the Indian realty sector may jump around six-fold to $30 billion in the next 10 years. According to Assocham the sector is expected to grow more than 30 per cent in the next few years.

presently, the flow of Foreign Direct Invest in Indian Realty Sector is estimated at around 5 to 5.50 billion dollars. The domestic real estate market stands at $14 billion, is expected to be $102 billion in the next 10 years, when the FDI inflows to the sector would be about 30 billion dollars. Read More »

RBI Asks Govt to ban automatic FDI in Real Estate

The Reserve Bank of India has asked the government to open the doors for Foreign Direct Investments (FDI) into real estate sector only after the clearance from Foreign Investment Promotion Board (FIPB).

Currently, up to 100% FDI is allowed in realty projects on automatic route if it complies with certain conditions like a three year lock in period on investments and minimum capitalization of $5 million. Read More »

Emaar to Establish 100% India Subsidiary

Emaar, the Dubai based Real Estate Company, is planning to set a 100% subsidiary in India as it already occupies an equal joint venture with Delhi based realty company MGF.

The new venture will be executed through Hamptons International, one of the UK’s premier international residential agents Emaar acquired in 2006 for $500 million. Emmar has already begun the process of recruiting people for the new venture. Read More »

RBI to Issue Directives for FDI/FII Stake in Commexes

The Reserve Bank of India (RBI) may soon come up with new guidelines for allowing foreign investors to acquire stake in the country’s commodity exchanges within a fortnight.

The directives to be issued by the apex bank are likely to be similar to those issued for stock exchanges, says Yashwant Bhave, consumer affair secretary. Read More »

Cross-Border Investors Pushing FDI in Indian Realty

Of a total $30 billion of foreign direct investment (FDI) earmarked for Asian real estate market in 2007, $6 billion is believed to come into Indian real estate only, says a report compiled by Jones Lang LaSalle (JLL), one of the world’s leading real estate services and money management firms.

The consultancy firm has also given details about the deals taken place during January-March 2007. Taking the changing trend in FDI during the first quarter of 2007, a major part of the capital has been used in the residential sector and in mixed used projects. Since builders and property developers are not allowed to use the capital raised from banks for purchasing land parcels, capital raised through private placements, foreign investments and funds are being used for such transactions, says Abhishek Kiran Gupta, JLL strategic consulting & research division senior manager. Read More »

Rush of FDI in Indian Real Estate

In a bid to tap booming Indian real estate, foreign investors are being bullish on making large-scale investments in the market. In the next couple of years, an investment of USD10 billion is likely to facilitate by FDI route that clearly means huge growth of the sector.Of the investments worth USD 30 billion estimated for Asian real estate market, USD6 billion have been predicted for India alone, says a report by leading property consultant Jones Lang LaSalle.

Compared to other property markets, India offers a high return of around 20-25% on real estate investments. This is one of the factors encouraging foreign players to look forward to Indian real estate, ads the report. Read More »

$6 bn Real Estate Equity Deals for Indian Realty

One-fifth of the Real Estate Equity deals worth $30 billion planned for Asian markets will find its way to Indian real estate. However, the amount is believed to be less than what it has been earmarked for Japan and China.

An estimated $10 billion foreign investment is likely to enter the Indian real estate in the next 1-2 years. Taking a look back at 1990s, the inflow of foreign direct investment into the market was estimated to be at $2-3b billion a year. It was recorded to be $5.6 billion, and reached its peak in 2005-06 at $7.2 billion. Read More »

Govt. Efforts to Stifle FDI

In an effort to incorporate foreign direct investments (FDI) norms in Indian Real estate, the government is entangling itself in micro-regulation that runs the risk of curtailing the flow of such investments.

The restrictions including minimum project size concerning the area and a lock-in-period were imposed to keep out speculative foreign capital. However, they overlooked the fact that real estate companies could be listed. The government has now decided to bar construction companies from issuing depository receipts (ADRs or GDRs). Read More »

JP Morgan to Invest Rs 400 Cr in Indian Realty

JP Morgan Property Fund, which has already invested over USD 300 million to carve out a significant niche in Indian real estate, is soon to come up with a residential project in Chennai, with the investment of Rs 400 crore.

Arihant Foundations and Housing Ltd. (AFHL), Chennai’s leading developer of world class buildings, will develop the residential property over a large area of 45 acres of land. Read More »

Govt. May Review FDI Norms Soon

The government is considering modifying norms for foreign direct investment (FDI) in India. It would be done by bringing both direct and indirect overseas investment together to determine the total FDI within a company. It would help to check out whether a company is following the FDI limits in its area of operations. The decision has come after the Hutch – Vodafone issue.

The shift is likely to bring significant changes in foreign investment caps in investment sectors including telecom, retail, and aviation. Read More »