Rs. 32,000 Cr to Roll into Indian Real Estate

March 12, 2007	(Be the first to rate this story!)  Loading ...
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These days all roads and funds lead to the ever-growing Indian real estate sector. According to a news report, listed domestic, overseas investors and private equity funds are looking to invest more than Rs 32,000 crore into the country’s real estate.

“The upcoming improvements in the property market has contributed the surge in investment flows by domestic and financial institutions”, says an ICICI Property Services –Technopark and added that it helped major players dealing in real estate like Hiranandani Group’s Hirco, Unitech Corporate Parks, Indiabulls’ Dev Property Development.

While, there are various firms that have raised around Rs 11,000 crore from overseas markets, mainly London. The firms include: Trinity capital, Yatra capital and West Pioneer Properties and various others.

However, around Rs 21,000 crore has been raised by domestic and global private equity funds of Urban Infrastructure Opportunities, Solitaire I, IL&FS Realty, India Advantage Fund, HDFC Real Estate, Kotak India Real Estate I, Kshitij Venture Capital, JP Morgan India Realty, Peninsula Realty.

A study carried out on the future of mall development has predicted that the next-stage of sophisticated funding mechanisms might see real estate investment trusts, real estate mutual funds, VCFs and IPOs due to the sustained yield of about 18% in retail real estate sector.

Indian government’s policy on real estate investment has a drawback in the form of permitting 100% FDI under the automatic route. It can be used to develop townships, housing, built-up infrastructure and construction development projects, subject to conditions.

News Published Under:   Real Estate India |

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