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.
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.
- Music Review of A Mouthful by The Do “The Do” are a French two-piece or duo indie band based in Paris. The Do were formed in 2007 and they are Dan Levy (Musician) and Olivia Merilahti (Vocals). Their music covers a wide variety of genres that include indie rock, indie pop, folk rock and a bit of electronic......
- Three Basics for Success in the Music Industry The music industry is full of talent that may never find success. It is unfortunate that it may take years to get a record deal, even if you're awesome! And in the independent music world, it still takes hard work to succeed, even with the increased amount of opportunities for......
- The Music Industry- Here Is What A Young Artist Needs To Know To Be A Star There are career development people and then there are agents, producers, music company executives and the rest that just do their job. The career development people are the ones who make stars. The others just play out their various roles in the scheme of things. Remember music may be......
- Commercial Real Estate - What Asset Types Are Best To Invest In? Apartment Buildings Mini-Storage/Self-Storage Senior Housing Raw Land Entitled Land, Ready-To-Build Office Buildings Mobile Home Parks Campgrounds/RV Parks Car Washes Ground Leases (With a business on the land owning the building it occupies - a common model for fast food franchises) Hotels Golf Courses Entertainment Centers (mini golf, go carts,......
- Real Estate Investments - Good Idea or Bad Idea? Right now, if there was a market that had bad news written all over it, it would be real estate. The housing crisis has made investors jumpy, the economy appears to be tanking and home values are plummeting across the country. Would you believe that this is actually a good......
- Commercial Real Estate Investing Courses Reviewed - Wright Thurston [/caption] Product and Seminar Product Review: Diamonds in the Rough by Wright Thurston First of all, if anyone wants to buy this course from me, make me an offer. I paid about $800 for it at one of those hype filled pitch-fests they like to call real estate investment......
