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Real Estate boom in India. - Feb. 27th, 2006 -

Year 2005 brought an unexpected success for the real estate industry in India. Prices sky-rocketed in multiples of last year prices. The boom maintained its pace in year 2006 and doing well. The 100% Foreign Direct Investment opened gates for foreign investors with a promise of lucrative returns. The real estate infrastructure is flourishing by continued supply of foreign exchange to the building industry investment funds. Some real estate firms like Dubai based "Emma r" were few of taking advantage of this Foreign Direct Investment (F.D.I.) relaxation.

Some reports surfaced the fact that Indian Real Estate market will be growing to a US$102 billion in the next 10 years from current US$14 billion. This growth is not unexpected given the professionalism in government policies, new favorable demographics, better financing products and increased purchasing capacity. Cities like Delhi, Mumbai, Bangalore, Pune, Hyderabad and Punjab are likely to grow 600% in terms of commercial spaces. The residential sector has enormous amount of townships on the way by big players like Uni-tech, Omaxe , D.L.F. and T.D.I. with their promising projects. Some builders are even coming up with specialized and themed commercial and residential developments like home appliance malls, auto malls, food plazas and many more.

M.V.L., the real estate division of consumer electronics giant 'Media Video Limited', is launching a US$400 million IT Park project called ‘Softech Village’ in Gurgaon. The park ‘Softech Village’ is scheduled to be completed in 24 months. The project will offer around 400000 square feet to information technology firms seeking a foothold in India.

The A.P. State Government is now turning attention to the hardware sector. The State Government has identified 1,200 acres of land for promoting the hardware sector to woo companies, along with plans to locate few special economic zones for IT companies.

Gujrat is also not out of this boom. An Special Economical Zone will come up on 127.9 hectares on the Ahmedabad highway.Ahmedabad based real estate business major, N G Group, has proposed to build special economic zone (S.E.Z) at the cost of US$414 million for industrial machinery and ancillaries.

I.C.I.C.I Bank, India's largest private sector bank introduced Integrated Real Estate Services through which you can capitalize on the Indian real estate boom. With their wide geographical reach, they are able to invest money across sectors and cities. Transparent and credible real estate solutions are welcoming. A vast experience and expertise, a strong network of highly qualified, committed & experienced professionals and unmatched reach in the property market make the best deals in Industry possible.

A leading financial firm "Kotak Mahindra Investments Limited" has announced that "Kotak India Real Estate Fund", a close-ended venture capital fund scheme promoted by Kotak Mahindra Realty Fund, has closed its domestic tranche raising US$100 million. In addition, the fund has received commitments of US$60 million, which is awaiting regulatory approval.

The fund, which has been organized as a scheme of "Kotak Mahindra" Realty Fund under the "S.E.B.I Venture Capital Regulations", has "Kotak Mahindra Investments Limited", as the investment manager.The fund would make investments at a project level with developers as well at an enterprise level in realty development companies. The fund has the mandate to make investments in retail, hotels, health care, education and other related sectors. The strategy of the fund would be to invest in the following types of opportunities: Company level investments with large development companies at a project level in various types of property development ventures, namely, mixed use schemes, hotels, residential, townships, offices, IT parks, shopping centers and the like.

Needless to say that the time is perfect to invest in the Indian real estate. The industry is looking forward for continued growth in future and who knows it may turn to be a phenomenal success in the coming years.


About the author: Author is the CEO of Architectural Rendering firm known as http://www.virses.com which provides outsource architectural renderings to real estate, visualization, media and architectural firms. He can be contacted at harjeet@virses.com. This article can be distributed freely as long as it is not modified and includes author information.



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