Realty experts respond to Morgan Stanley’s Mega Deal

January 19, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

With news of Morgan Stanley’s Rs.675 crore investments in Oberoi Constructions, Mumbai, realty experts are in a debate over the effect such FDI will have on the property market.

Builders will earn a lesser rate of return on their investment, is the concern expressed by Joy Sanyal, Vice President, Trammell Crow Meghraj, as availability of property will surpass demand. Sanyal fears a lowering of return by 8 to 10 % with the presence of FDI in the realty market.

Shapoorji Pallonji Director Amit Thakkar however avers that foreign investment will set apart the quality of construction of such assisted projects, and justify the rates demanded by them. Buyers would appreciate the difference in pricing that is likely to arise out of these investments.

The flow of funds should not interpret into hasty buying of projects at unrealistic levels cautions Vinod Rohera, Director Marketing, K.Raheja Corp. This would protect the builders who are not going ahead with investments from FIIs. Hemant Shah of Akruti Nirman says foreign institutional investments should be committed to meeting deadlines in completing their projects, which are likely to be mega-sized. He is however confident that FIIs would stabilize the market and ensure a sustained 25 -30% growth in this sector.

News Published Under:   Real Estate India, Real Estate Developers |

Comments