India gets realty check from Gulf investors
Gulf property majors shun India's economic indicators and dig-in for the long haul - India's real estate market estimated to grow to $60 billion by 2010
Tweet-- 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 ‘Çityscape Intelligence’. As a consequence a large contingent of regional real estate investors and developers are poised to descend on Cityscape India to further their long term ambitions in the sub-continent.
Graham Wood, Exhibition Director for Cityscape India said, “The internal demand for commercial and residential real estate in India is 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.”
Dubai-based Limitless is confident about the long term prospects of India’s real estate sector. "India is currently facing ashortage ofsome 21 million homes, and more than 300 million people are expected to migrate to urbanareas over the next 20 years. At Cityscape India, we will showcase 11 global projects includingBidadi -- our proposed 4,000 hectare mixed-use developmentnear Bangalore -- whichwill house around 750,000 people," said Saeed Ahmed Saeed, CEO of Limitless.
In addition Mohamed Binbrek, Group Chief Executive Officer of Dubai Properties recently confirmed that the company hopes to expand its development projects into India. He went to say that whether the scheme would be residential, commercial or mixed-use, the project would be funded by the firm itself.
Dubai-based real estate developer Majid Al Futtaim (MAL) has announced it is investigating India ‘a market to be in’ as a possible region for investment and development. Younis Al Mulla, MAL 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 Hyderabad. Ras Al Khaimah Investment Authority (RAKIA), which manages funds of the emirate, part of the United Arab Emirates, 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.
Indeed demand for affordable housing is an issue that Kumari Selja Minister of State (Independent Charge) for Ministry of Housing and Urban Poverty Alleviation will address during the opening of the Cityscape India Conference.
“With 70% of India’s 1.2 billion people categorized as lower class, the demand for affordable housing is immense and potentially the long term returns for investors and developers is colossal,” said Wood.
This year’s Cityscape India, which is due to take place at the Bombay Exhibition Centre on 8-10 December 2008 will host major real estate players such as RAK properties, Dubai Investments, Tanmiyat, Gulf Finance House and Limitless.
In total Cityscape India is set to welcome more than 7,000 participants from around the world. "In addition, leveraging its relationships in the global investment market place, Cityscape will reach out to over 350,000 senior decision makers seeking to invest in one of the world’s fastest growing economies," added Wood.
Another highlight this year will be two parallel conferences, ‘Infrastructure Finance & Investment’ and ’Retail City Summit Day’. Notable participants include the Trump Organisation of the United States, Al Futtaim Group Real Estate, UAE, Merrill Lynch, India and Ansal API Group, India.
Platinum sponsors of Cityscape India 2008 are Limitless a Dubai World company and Soundlines, a diversified company with offices in UAE, Saudi Arabia, Qatar, India, Nepal and Bangladesh. Leading real estate and investment company Tanmiyat are the Gold sponsors.
Notes to Editor
For more information please visit: www.cityscape-india.com