Monday, December 31, 2012

Real Estate Investments in India


As per the investment and real estate experts there is a boom expected in the real estate market in India and this is the reason why people are looking for investments in Indian real estate. Now with the Indian Government itself trying to make the real estate market a favourite place for the investors there is a good amount of potential interest seen by the investors. Also the investments in real estate are now considered to be safe. This is also supported by the fact that there is a liberalization noticed in the foreign direct policy to attract foreign investors.

As per the industry experts, the real estate market is considered as a driving factor of Indian economy. As per the facts, foreign direct investment is expected to increase to US$25 billion in the next 10 years. FDI inflows in real estate in 2011-12 were Rs.2750 crore (USS 493.80 million). In May 2012, FDI inflows in real estate were Rs.419.87 crore as compared to Rs.321.35 crore.

Indian real estate became as popular sector for private equity funds. There was an investment noticed of around US$1,700 million in this sector during 2011. Private Equity in real estate projects will fetch considerable returns by next year-end or early 2013, according to Vikram Hosangady, Partner, KPMG.
In order to modernise the infrastructure, there is a need to invest US$ 1.2 trillion over next 20 years as per the report released by McKinsey Global Institute (MGI)-India’s urban awakening. 

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