Indian realty lures global investments

October 13, 2006	(Be the first to rate this story!)  Loading ...
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In the corridors of international investment, what’s really grabbing all the eyeballs towards India right now is the hot property market.

Experts are predicting high returns of 15-30% from the burgeoning Indian real estate market, which has already seen a fund flow of $1.5 bn and slated to grow at 30% annually. Foreign investors are hoping that they will be able to reap the harvest.

Leading international player Calpers has invested $100 mn into an Indian realty fund. US investment bank Morgan Stanley may invest $1 bn in Indian Construction companies. US developer Tishman Speyer has tied up with India’s ICICI Bank to pour $1 bn into the market.

Players like JP Morgan , Lehman Brothers and Merrril Lynch are hunting for deals even as funds are also coming from places like Middle East, Malaysia and Singapore.

The relaxation in FDI norms has also increased foreign fund flows into the Indian realty market and a lot of new funds are also being setup, but deployment is rather slow.

The global players are betting big on India. However, on the flip side, experts fear that valuations look stretched and the climbing land prices could pull down returns. The distribution of foreign funds have been rather uneven, as most of the funds have gone to places like Bangalore, Mumbai, Gurgaon and Hyderabad.

India’s property market is attracting global realty funds and industry players expect a flow of up to $5 bn over the next five years to flow into India. Even though soaring prices pose a risk of a meltdown, foreign players are quiet confident that the ground will not fall from beneath their feet.

Source: www.timesnow.tv

News Published Under:   Real Estate India |

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