Inidan realty attracts foriegn players


Real estate rates in the Indian metros cities like Mumbai and Delhi continue to soar it is just the beginning for foreign investors. That’s the community that will be eyeing the Indian realty space with keen eyes, their motto as clear as Mark Twain said it, “Buy land they are not making much of it anymore�. There’s more than just a piece of land, but also changing lifestyles and landscapes that will surround us in the near future.

After February 2006, with the opening up of FDI (Foreign direct Investment) into the real estate sector, the Indian market is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years.

So why do international companies find India, especially Mumbai so attractive? It is all about demand and supply. In terms of land there is hardly any new land in Mumbai and prices are rocketing skywards. Foreign companies see that there are more returns here compared to those in the real estate business abroad, so they will invest here. Secondly, the land laws are complicated. It makes more sense for foreign companies to tie up with builders here so that they can get better access to the Indian markets.

The people benefiting are firstly the developers abroad who are considering joint ventures with people here in India. Secondly, people on the government board, for example, GIC in Singapore , which is a global investment management company, which manages Singapore’s foreign reserves and thirdly the real estate venture funds especially in Mumbai. The trend is clear it is a lot like what happened in Malaysia and Thailand a few years ago. There is definitely a boom. There is added competition in the market which will help give a better and faster product for customers.

A combination of growing salaries/income, relaxation of the FDI ceiling and growing demand from commercial, residential, retail, industrial hospitality, healthcare etc has made the Indian market a feasible market for foreign investors

In Mumbai, Runwal Builders has tied up with a Singapore-based real estate company called Capital Land. The involvement of foreign players in realty here is because of the new financial spurt in the economy. It is both beneficial to Runwal and Capital Land as

they can share their expertise. The Singapore-based company has appointed its staff for projects here also. It all works in tandem. It is not like they have invested and the Indian builder alone is doing the building. Even the architecture and landscaping ideas have come from the Singapore builder.

At the end of the day, it’s about profit. And land availability in the market is what everyone is eyeing. People buying property (flats) are also looking at it as an investment. With the splurge in loan facilities there’s also a greater access for people to get into buying property. The rates themselves have gone up by almost 100% in the last couple of years. All this surely means that the right time to get hold of own piece of land is now.