Dubai: The value of real estate projects announced by Gulf investors in India has reached Dh135.79 billion ($37 billion), according to available information.
Companies such Nakheel and Emaar MGF have committed $32 billion between them to pan-Indian property developments. And a host of private developers are poised to make their move in a sector that market analysts say will grow by 700 per cent within the next 10 years.
"During the last couple of years several large institutional investors have been making high value investments in India and we expect to see a steady rise in such investments," said Raed Al Saleh, assistant general manager - asset management division at Kuwait Investment Company (KIC).
Al Saleh said transactions in the market are expected to grow from $14 billion to $102 billion in the next 10 years, fuelled by favourable demographics, growing purchasing power of the 200 million strong middle-class, increased levels of professionalism in the sector, and reforms on FDI.
The country attracted investments worth $3 billion in the real estate and construction sector, out of a total foreign direct investment (FDI) of $19 billion, in the fiscal year that ended in March, said Ajay Dua, secretary with the Indian government's department of industrial policy and promotion.
FDI target
Overseas inflows this year will help the country to achieve a 2007-08 target for total FDI of $30 billion, he said.
Emaar MGF, a joint-venture between Emaar Properties and India's MGF Developments, this week announced it has embarked on a $12 billion pan-India programme that will include special economic zones, hospitals, residential units, hotels and malls.
Earlier this year, India's largest real estate developer DLF announced an agreement with Nakheel worth $20 billion to build two townships in India.
Meanwhile Damac Properties, an arm of Damac Holding, is planning its foray into India with more than a billion dollars of investment into luxury residential complexes and resorts.
A top official at Dubai-based developer ETA Star Properties said last month the company will develop a Dh3.38 billion ($923 million) infotech park in Chennai. The announcement took the group's total investment value in India to Dh16.44 billion so far.
Another project is the $395 million Energy City India, being developed by Gulf Finance House. Now at the equity raising stage, the project is the second energy city in a series of energy focused business clusters planned across the Middle East and Asia, following Energy City Qatar. It will occupy a 600 acre site in New Mumbai, a satellite city to Mumbai.
KIC, which also partnered Gulf Finance House on Energy City Qatar, says the private placement initiative, is open to both institutional investors and individuals.
http://www.gulfnews.com/business/Real_Estate_Property/10130861.html
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