Rush of FDI in Indian Real Estate

June 7, 2007	(1 votes, average: 4 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

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.

Other factors attracting attention from foreign investors include high rental, capital value appreciation, and large availability of quality supply in India. A major part of investments are being put in development of residential and mixed-use real estate projects.

Total FDI share in the year 2007 is likely to rise by 26% as against 16% previous year, which saw large investments made by big companies such as Morgan Stanley, Citigroup Property Investors and JP Morgan.

Following in footsteps of these foreign investors were West Asian investors like the Nakheel Group, which recently tied up with DLF.

“We expect USD 10-12 billion of investments for Indian market,” says Vincent Lottefier, Country Head–India, Jones Lang LaSalle. Also, high growth is assured for IT, retail, and residential sector.

According to the report, metros like Delhi and Mumbai fill delight cup of wealthy foreign investors, as these are mature markets whereas smaller cities like Pune, Hyderabad, and Kolkata are emerging as the preferred investment destinations.

News Published Under:   Foreign Direct Investment in India |

Comments