With the Indian govt. planning to further liberalize the Foreign Direct Investment in the Indian Real Estate and Retail market, more and more inflow of the big names in expected to roll in the Property in India bazaar and the retail sector. The commerce ministry meanwhile is trying to build consensus on its proposal to permit Specialized Foreign Investors/ Funds and Retailers in Indian Real Estate and Retail industry. The Govt. also seeks to double the FDI inflow to $50 billion – 100 billion this fiscal in order to maintain growth rate of 9-10 percent per annum over the next five years.
The FDI’s has entered the Indian Real Estate Market through the joint ventures with Indian Investors or independently. This bull run in Real Estate India market started after February 2005, when the govt. allowed 100% FDI in the construction sector. The land parcel minimum has been reduced from 100 acres to 25 acres, which has opened up more and more opportunities for Foreign Investors and developers.
The cross border Real Estate/ Retail investors who have a long term strategic vision and commitment to Indian Real Estate and Indian Retail are likely to be the most successful. Singapore developers and US opportunity funds which have dominated the Real Estate Indian and Indian Retail market so far, are focusing on IT Park, Residential, and Commercial schemes.
Among some top Foreign Investors who have taken up projects of Property in India and Retail India are Lee Kim Yan Holdings (Singapore), Emaar Group (Dubai), Morgan Stanley Real Estate Fund, Walmart (USA), Tesco (UK), Carrefour are seeking a foot hold in the Indian Real Estate and Retail market in collaboration with Indian Partners.
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