| Today the real estate market in India is at an all time | | | | cost housing market and is planning to make |
| high. With the emergence of multinationals, the demand | | | | substantial investment. Further, Dubai based Emaar |
| for office and residential space has increased many | | | | Group has already invested USD 100 million in |
| folds. But the investors of this market still consider India | | | | Hyderabad. And companies from Canada, Malaysia, |
| as an emerging market for the restrictive laws relating | | | | Tokyo, UK, and Singapore have all committed millions |
| to Foreign Direct Investment (FDI) and earning profit is | | | | of dollars in India. This is all the result of easing of laws |
| difficult in India's property sector. Sensing this, | | | | along with impressive property price growth. |
| Government has liberalized the laws relating to FDI in | | | | The local factors contributing to this booming real |
| February 2005. With this now Non Resident Indians | | | | estate market is the rise in demand for the property |
| (NRIs) or Overseas Corporate Bodies (OCBs) can | | | | for sale and rent. With India's population raising to over |
| invest upto 100% in the sector and also in real estate | | | | million the potential for growth in property demand is |
| industry and construction ventures. A foreign Company | | | | huge. In addition to this the growth of IT sector and |
| with 60% NRI holding is considered as OCBs. But still | | | | outsourcing in particular geographical areas has led to |
| Government has certain rules in place for purchasing | | | | the demand for office and housing space in those |
| commercial property by foreign company i.e. property | | | | areas. With the increase in the buying power of these |
| for business purposes. | | | | professionals and the availability of housing loans has |
| Although the investment period is restricted to minimum | | | | made it possible for them to afford their own houses. |
| of 3 years for the FDI to avoid speculative trading but | | | | The increase in demand has also inflated the property |
| the real charm is that the investment is now allowed in | | | | prices. |
| the smaller projects of 25 acres, (which was 100 | | | | Before 2005 there was only 1.1% of foreign direct |
| acres earlier). The hassle free and the easiest way to | | | | investment in India's real estate sector. But after |
| enter this market is by buying an investment fund. | | | | Government easing the controls and restriction on |
| There are many attractive and transparent funds from | | | | foreign ownership of immovable property and also on |
| reputed investments houses. It is expected that with | | | | terms of ownership, there is a strong inward inflow of |
| the liberated laws, real estate investment fund will | | | | foreign investment interest in India. Government of India |
| emerge soon. But care should be taken before | | | | is keen to attract investment in this sector but in favor |
| acquiring any land and legal help should be taken at | | | | of control investment. As a result the local builders are |
| every stage of buying process. | | | | earning around 30-50% of rate of return on capital and |
| The increase in global real estate investment interest in | | | | property prices has increased in excess to 20%. Cities |
| India is evident from the fact that US real estate | | | | like New Delhi, Mumbai and Banglore are mainly |
| billionaire, Sam Zell has termed India as world's lowest | | | | attracting these investments. |