Hans Erik

Today the real estate market in India is at an all time high. With the emergence of multinationals, the demand for office and residential space has increased many folds. But the investors of this market still consider India as an emerging market for the restrictive laws relating to Foreign Direct Investment (FDI) and earning profit is difficult in India’s property sector. Sensing this, Government has liberalized the laws relating to FDI in February 2005. With this now Non Resident Indians (NRIs) or Overseas Corporate Bodies (OCBs) can invest upto 100% in the sector and also in real estate industry and construction ventures. A foreign Company with 60% NRI holding is considered as OCBs. But still Government has certain rules in place for purchasing commercial property by foreign company i.e. property for business purposes.

Although the investment period is restricted to minimum of 3 years for the FDI to avoid speculative trading but the real charm is that the investment is now allowed in the smaller projects of 25 acres, (which was 100 acres earlier). The hassle free and the easiest way to enter this market is by buying an investment fund. There are many attractive and transparent funds from reputed investments houses. It is expected that with the liberated laws, real estate investment fund will emerge soon. But care should be taken before acquiring any land and legal help should be taken at every stage of buying process.

The increase in global real estate investment interest in India is evident from the fact that US real estate billionaire, Sam Zell has termed India as world’s lowest cost housing market and is planning to make substantial investment. Further, Dubai based Emaar Group has already invested USD 100 million in Hyderabad. And companies from Canada, Malaysia, Tokyo, UK, and Singapore have all committed millions of dollars in India. This is all the result of easing of laws along with impressive property price growth.

The local factors contributing to this booming real estate market is the rise in demand for the property for sale and rent. With India’s population raising to over million the potential for growth in property demand is huge. In addition to this the growth of IT sector and outsourcing in particular geographical areas has led to the demand for office and housing space in those areas. With the increase in the buying power of these professionals and the availability of housing loans has made it possible for them to afford their own houses. The increase in demand has also inflated the property prices.

Before 2005 there was only 1.1% of foreign direct investment in India’s real estate sector. But after Government easing the controls and restriction on foreign ownership of immovable property and also on terms of ownership, there is a strong inward inflow of foreign investment interest in India. Government of India is keen to attract investment in this sector but in favor of control investment. As a result the local builders are earning around 30-50% of rate of return on capital and property prices has increased in excess to 20%. Cities like New Delhi, Mumbai and Banglore are mainly attracting these investments.

Number of Words: 532

Keyword: real estate

Frequency: 10

Ben Hirsh is the owner of the Ben Hirsh Real Estate Group and an expert on Woodstock GA real estate . His unique website features a helpful sellers page where he explains what he can do as your Woodstock GA listing agent to sell your home. The site also features a Woodstock GA MLS search, Search where home sellers can study other homes on the market.

• How to Make Independent Music : How to Review Album Art Proofs Learn how and where you can review album art proofs for your indie album in this free video series that will show you how to be a successful independent music writer. Expert: Frederick Burchell Bio: Frederick "Ricky B." Burchell is a rapper/producer. He has had a number one for......
• Lawn Scarifier - To give Best and Healthy look to your Lawn Lawn Scarifier helps to remove any mosses and thatch which grows in between your lawn, hence giving smooth and clean look to your lawn. Many different types of Lawn Scarifier are available in market. Some can be worked automatically while some are used manually. They are available in different sizes......
• Getting Your Independent Music Heard You are absolutely ecstatic because you have written all your songs, produced the music and your CD is complete!! You find yourself jumping for joy and then it dawns on you--People have got to hear this! But how? When? Where do I begin? This is the thought of many people......

• The Mortgage Crisis and Investments in Real Estate According to regional and state real estate analysts, the factors which previously fueled the housing boom of the last few years are easy to explain. The factors that fueled this boom in the real instate industry ranged significantly, including: - Interest rates that were historically low. - Flight-Risk Safety Investments......
• Real Estate Investing - Latest News Image by thinkpanama via FlickrThe latest news in real estate investing from around the blogosphere: Real Estate Investing, Real Estate Investment News, Investing ...Welcome to real estate web profits to get current news on real estate investing news, real estate investments news, investor websites news, investment news and all about......
• Review of Millionaire By Thirty Douglas Andrew’s book reads like a rejected first draft of Rich Dad, Poor Dad and right off the bat, it’s kitschy premise (ripped right from the above book) falls more than a little flat. In order to illustrate his points, the author relies on his sons and their imaginary......

Related posts:

1. How to Make Independent Music : How to Market Your Record on the Internet
2. Smartes Way To Search Texas Divorce Records
3. Music Review!
4. Promoting Your Music Online: Unsigned bands finding new ways of reaching their public
5. Ben Folds Tickets—that Folds Album You Downloaded Probably Isn’t Real