Issue No 290 - 10 Nov 2008
Gulf investors eye India 'real estate boom'

The real estate giants in Gulf countries have shunned India’s economic indicators and are digging in for the long haul as India’s real estate market is estimated to grow to $60 billion by 2010, said a real estate market expert.

Despite the current economic downturn, India’s real estate is said to be worth about $16 billion and is estimated to post annual growth rate of 30 per cent to reach $60 billion by 2010 according to research outfit ‘Cityscape Intelligence’.

As a consequence a large contingent of regional real estate investors and developers are set to descend on Cityscape India to further their long term ambitions in the sub-continent.

Graham Wood, exhibition director for Cityscape India pointed out that the internal demand for commercial and residential real estate in India was undeniable.

"The investment climate may be difficult but developers will benefit from lower land prices, lower material and labour costs. Providing that the finance is in place, many developments may be approaching completion after the downturn has bottomed-out," he noted.

Dubai-based Limitless is confident about the long term prospects of India’s real estate sector. "India is currently facing a shortage of some 21 million homes, and more than 300 million people are expected to migrate to urban areas over the next 20 years," said Saeed Ahmed Saeed, CEO of Limitless.

At Cityscape India, we will showcase 11 global projects including Bidadi - our proposed 4,000 hectare mixed-use development near Bangalore - which will house around 750,000 people," Ahmed Saeed added.

In addition Mohamed Binbrek, group chief executive officer of Dubai Properties recently confirmed that the company hopes to expand its development projects into India.

Dubai-based real estate developer Majid Al Futtaim (MAF) has announced it is investigating India ‘a market to be in’ as a possible region for investment and development.

Younis Al Mulla, MAF business development officer, said that the firm was looking to enter a joint venture with a local firm to help it build a mixture of residential and commercial real estate in the country.

The investment arm of Ras al-Khaimah also plans a $5 billion business centre at south Indian city of Hyderabad.

Rakia, who manages funds of the emirate, said recently it had signed an initial agreement with Andra Pradesh Industrial Infrastructure Corp to set up Hyderabad Economic City, which will offer financial and healthcare services.

This year’s Cityscape India, which is due to take place at the Bombay Exhibition Centre from December 8 to 10 will host major real estate players such as RAK properties, Dubai Investments, Tanmiyat, Gulf Finance House and Limitless.

Source: Trade Arabia News

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