India Real Estate Monitor

Real estate is expecting $400-500 million worth of FDI flow. These expectations are being guided by the going on trends in investment industry. Investors and developers are showing their interests in metros as well as in smaller cities too. Investments are going on in Bangalore, Delhi-NCR, Mumbai and Pune because of the high demands. On the other hands, smaller cities like Indore, Nasik and so on, are emerging as big real estate investment destinations for developers and investors because of low land price.

According to Mr. Sanjeev J Aeren, President of the North India Chapter of CREDAI (Confederation of Real Estate Developers Associations of India), Indian realty sector will grow from $ 12 billion in 2005 to $ 90 billion by 2015. He believes that India is all set to see the glow of international money like never before. Further he adds, foreign funds are largely responsible for the exponential growth of realty stocks in the country and apart from that, a lot of money is also flowing in through the private equity too. He said that foreign investors had reached India very late. In the beginning, Real estate investors were interested in Dubai. But now the scenario has changed. Business houses from Dubai are eager to invest in India.

US-based global investment bank, Goldman Sachs, has planned to set up a special purpose vehicle (SPV). They have planned to invest $ 208.7 million. Zurich-headquartered Credit Suisse, the world’s leading financial house, is deciding on a $ 1 billion fund to invest in India’s real estate sector. Dawnay Day International, the $ 10 billion UK-based investment company, plans to invest $ 1.5 billion in Indian real estate in the next two years.

Apart from this, Australian real estate consultancy major LJ Hooker, with 700 odd franchisees in South East Asia, has opened its India account with a franchisee in Bangalore. Even investors from Israel, Malaysia and Singapore want to invest in India.