Foreign biggies looking to invest in Indian real estate
December 3, 2007
India’s booming real estate industry, growing at a scorching 30 per cent and estimated to touch $60 billion by 2010, has caught the fancy of global realtors and investors who have pumped in or are looking to invest heavily in the sector.
Indian real estate industry, which is currently pegged at 16 billion dollars, is witnessing increased interest from several international developers, primarily from the Middle-East, South-East Asia and Europe.
During this week itself, Donald Trump Jr of US-based Trump Organisation announced it was scouting for partners to foray into the country’s realty market, while Dubai-based DAMAC Properties said it would invest up to 5 billion dollars (about Rs 20,000 crore) to develop properties in India.
Early this week, Merrill Lynch & Co also bought 49 per cent equity in seven mid-income housing projects of India’s largest real estate developer DLF in Chennai, Bangalore, Kochi and Indore for Rs 1,481 crore. The projects would be developed in about 7-8 years.
Dubai-based Nakheel and Hines of the US had earlier this year tied up with DLF to develop properties in India. DLF has formed a joint venture with Limitless Holding, a part of Dubai World, to develop a Rs 60,000-crore township project in Karnataka.
“We are looking for JV partners to enter into India. That is precisely why I am here. We are interested in the major cities for investment,” Trump Organisation’s Executive Vice- President (Development and Acquisition) Donald Trump Jr had told reporters in Mumbai.
DAMAC Holding, the parent company of DAMAC Properties, Chairman Hussain Sajwani said: “We plan to invest