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

December 12, 2007	(Be the first to rate this story!)  Loading ...
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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.

In a statement Mr. Venugopal Dhoot, President, Assocham said that foreign developers can undertake construction activities on a minimum space of 50,000 sq ft, which may be raised by the government over the years, subsequently resulting in more FDI inflows.

The government needs to do away with the multiple approvals at the central and state levels required for setting up townships. Seeing the instant growth of the country’s IT sector, which would require space of 200 million sq ft and around 20 million dwelling units, the real estate sector is set to grow exponentially, Mr. Dhoot further added.

The rapid increase in purchasing power and exposure to planned retail formats have redefined the consumption patterns for dwelling units due to which retail projects have mushroomed in smaller towns and cities.

The Chamber estimated that nearly 30 million sq ft of organised retail space is currently available, while another 90 million sq ft is likely to be added by 2008 from over 265 mall projects.

News Published Under:   Foreign Direct Investment in India |

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