Growth in Store for GCC Investment Into Indian Realty, says KIC

June 7, 2007	(Be the first to rate this story!)  Loading ...
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An increase is likely to take place in GCC investment into India in the next three years, says the data showcased by Kuwait Investment Company (KIC). Of this, a major part of the investment will see its way to Indian real estate, which is poised to make rapid strides by over 700% by 2017.

At present, the transactions in Indian property market are estimated to stand at $14 billion. If the sector continues to show such a performance, the figures are expected to reach the mark of $102 billion in the next 10 years. Several demographics are there pushing the growth. It includes growing purchasing power of the over 200 million strong Indian middle-class, increased levels of professionalism in the real estate sector, inflow of foreign direct investment (FDI), and the government’s mew stand regarding the same which has helped the country to woo foreign investors.

For the past few years, Indian realty has been a common hunting ground for large institutional investors investing high values, a trend which is expected to shape further.

Gulf Finance House (GFH), a leading investment bank from the Gulf plans to buy 600 acres in Navi Mumbai to set up India’s first integrated energy business district—Energy City India—with an investment of US$ 2 billion. The project will come up within a few kilometers of an upcoming international airport in Navi Mumbai.

The private placement initiative is only open to institutional investors. It has a minimum subscription level of USD250, 000, with ensuing investments in multiples of $50,000.

Developed in the renowned Lusail area of Doha in Qatar, Energy City Qatar was first of these clusters and announced in March 2006. A whopping $500 million was raised by the GFH to fund the development of the Qatar project’s infrastructure.

News Published Under:   Real Estate India |

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