 |
 |
-
Real Estate India
-
Explore Inside Pages
-
News by Month
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
$6 bn Real Estate Equity Deals for Indian Realty
| June 6, 2007 |  (Be the first to rate this story!) Loading ... |
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.
Major foreign private equity players are eager to tap Indian realty. The list includes prominent names of Goldman Sachs, Morgan Stanley, JP Morgan, Blackstone Group.
Morgan Stanley has recently closed a deal worth about $150 million with Oberoi Constructions in Mumbai. Meanwhile, the Nakheel Group in Dubai signed a deal worth $10 billion with DLF for development of residential projects in Tier-I and Tier-II cities.
There are several reasons encouraging foreign investors to look towards India. Strong commercial property yields across metros, the high capital and rental value appreciation and the availability of quality supply are some of the major factors attracting investors.
The growth of Indian Realty has actually been fuelled by a high proliferation of IT/ITes, and banking, financial services and insurance (BFSI). The growth rate of the retail market is expected to be around 35%, with organized retailing currently at a mere 3%.
Around 94% of capital investment in real estate is being deployed in tier I cities of Delhi, Mumbai, and Bangalore. There is a lower risk associated with the investments made into these cities in terms of developers and occupiers.
Total investments in Tier-I cities is expected to increase in the wake of the growing demand in these locations over the next two to three years, says Abhishek Kiran Gupta, senior manager, research, JLL.
News Published Under: Foreign Direct Investment in India |
|
Add to Favourite:
:
|
Related News:
