Office Space Demand Projection
Key regulatory developmentsThe key regulatory developments in the country are listed below that enlightens the growth momentum in the Indian real estate market:·Foreign investors are allowed to invest in commercial real estate developments across the country with a minimum built up area of 50,000 million sq.ft and Minimum area threshold for FDI in Integrated Townships reduced to 25 Acres from 100 Acres.
. Securities & Exchange Board of India (SEBI) has allowed Indian venture capital firms to invest in real estate.·Under Automatic route, 100% Foreign Direct Investment (FDI) is allowed in the construction sector.
Global InvestorsToday, the leading global investors are exploring the untapped opportunities in India’s real estate market with an investment worth of US$20 billion by 2010. Some of the big players like JP Morgan, Merrill Lynch, Lehman Brothers, GE Capital, HSBC, Government of Singapore Investment Corporation and host of others. The following are a few highlights in the real estate investments in the country:
·One of the world’s leading global real estate firm, Jones Lang LaSalle (JLL) plans to invest around US$ 1 billion in India’s property market.·Dawnay Day International plans to setup a chain of four-start hotels in India with investment worth of US$ 4 billion.· India Land Ventures (ILVL), a part of the Madrid-headquartered Americorp Group plans to invest US$ 585.48 million in eight key infrastructure projects across the country in the upcoming years..A unit of Deutsche Bank aims to invest more than US$ 1 billion over three years in Indian construction and real estate projects.·Global real estate majors such as Dubai World, Trump Organization of US, Smart City of Dubai and others have huge real estate development plans with an investment worth of US$20-25 billion in the upcoming years across the country.
Real estate developments India’s leading real estate developers have huge plans in the real estate development activities in the country like:
·Golden Gate Properties aims to invest US$ 437 million over 2 years in the residential projects in Bangalore and Hyderabad.
·Puravankara plans to build affordable housing projects in Bangalore, Chennai, Hyderabad, Coimbatore and Mysore in the built-up area of 59.80 million sq.ft comprises of 64,500 homes in the next five years.
·Mukesh Ambani-led Reliance Industries has announced a 50-50 partnership with US-based real estate investment trust Vornado to collectively invest US$ 500 million in a shopping mall.
·Bombay Dyeing plans to invest US$ 218.82 in Mumbai to construct both residential and commercial properties in 800,000 sq ft of land.
Conclusion Thus, India real estate has become a hot pick for global investors with FDI inflows worth of US$25 to US$ 28 billion investments. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), India’s real estate sector is worth around US$12 billion and is expected to reach US$ 60 billion by 2010 i.e. growing at a brisk 30 per cent annually. So, India’s leading realty developers are raising billions of rupees through initial public offerings (IPOs) in India.