Wary Indian banks open doors to property firms
India's banks are starting to open their doors to developers but remain wary about the risks of a fast-growing but young property market, making loans expensive and difficult to come by.
India eased rules on inward investment in the construction industry early last year, unleashing a wave of activity and a flurry of deals involving foreign funds.
The property industry is shedding a shady image of self-financed wheeler dealer developers. Young businessmen are eager for bank borrowing to help lure foreign partners and turn plots of family land into offices, shopping centres and housing befitting an economy growing at more than 8 percent a year.
But industry professionals complain banks have been slow to adapt.Prospective foreign investors, such as U.S. shopping mall developer Taubman Centers Inc., are also keen to borrow locally but balk at the personal and corporate guarantees on loans often required by Indian banks.
Source: http://www.ndtvprofit.com/homepage/news.asp?id=261921
India eased rules on inward investment in the construction industry early last year, unleashing a wave of activity and a flurry of deals involving foreign funds.
The property industry is shedding a shady image of self-financed wheeler dealer developers. Young businessmen are eager for bank borrowing to help lure foreign partners and turn plots of family land into offices, shopping centres and housing befitting an economy growing at more than 8 percent a year.
But industry professionals complain banks have been slow to adapt.Prospective foreign investors, such as U.S. shopping mall developer Taubman Centers Inc., are also keen to borrow locally but balk at the personal and corporate guarantees on loans often required by Indian banks.
Source: http://www.ndtvprofit.com/homepage/news.asp?id=261921
posted by Real Estate India at
2:27 AM
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