Interest in Indian real estate on rise
A burgeoning economy, coupled with policy reform on investment, has skyrocketed the demand for Indian real estate, especially among foreign investors.
The trend that was facilitated in April 2004 when the Securities and Exchange Board of India allowed venture funds to invest in local real estate, gained momentum in early 2005 when green-field real estate projects were opened for direct foreign investment.
"This is indeed a very prominent trend, especially in the Anglo-Saxon investment sphere. Searching for new opportunities in a world that is characterized by sharp declines in yields on many markets, emerging economies are increasingly being eyed. India, then, is a plausible target," said Tobias Just, senior economist at Deutsche Bank Research.
He added that a strong economic growth in the last few years, very strong population increase in the future and a still strong, rising demand for outsourcing services are all pointing toward strong demand growth for real estate in India.
Jumping into the fray are some of the biggest names in the business. Morgan Stanley has reportedly invested $68 million in Mantri Developers, a mid-sized construction firm in Bangalore, while Merrill Lynch has invested $50 million in Panchsheel Developers, a regional builder. New York-based Siachen Capital bought an undisclosed stake for $100 million in Nitesh Estates, a mid-sized real estate developer in India.
The trend that was facilitated in April 2004 when the Securities and Exchange Board of India allowed venture funds to invest in local real estate, gained momentum in early 2005 when green-field real estate projects were opened for direct foreign investment.
"This is indeed a very prominent trend, especially in the Anglo-Saxon investment sphere. Searching for new opportunities in a world that is characterized by sharp declines in yields on many markets, emerging economies are increasingly being eyed. India, then, is a plausible target," said Tobias Just, senior economist at Deutsche Bank Research.
He added that a strong economic growth in the last few years, very strong population increase in the future and a still strong, rising demand for outsourcing services are all pointing toward strong demand growth for real estate in India.
Jumping into the fray are some of the biggest names in the business. Morgan Stanley has reportedly invested $68 million in Mantri Developers, a mid-sized construction firm in Bangalore, while Merrill Lynch has invested $50 million in Panchsheel Developers, a regional builder. New York-based Siachen Capital bought an undisclosed stake for $100 million in Nitesh Estates, a mid-sized real estate developer in India.
posted by Real Estate India at
10:12 PM
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