India property boom 'here to stay'

Although UK property investors have traditionally opted for nearby and well-known locations such as Spain and France, some of the more adventurous have recently cottoned on to the earnings potential of some of the world's emerging markets.

One such market is India, which has seen rapid growth in real estate prices in recent years, particularly in major cities such as Mumbai, where a new breed of affluent young entrepreneurs and business professionals has emerged.

According to a recent article in the Daily Telegraph, the country has experienced massive economic growth, with a level of nine per cent recorded last year - the second fastest since Britain relinquished its hold and India became independent. The demand for new homes in the country is also expected to be healthy, with 20 million properties sought over the next five years, according to the paper.

Furthermore, the publication predicts that by 2015 the real estate market will have experienced a seven-fold growth - potentially offering a number of very lucrative opportunities for Britons who are willing to invest.

Ashish Jagnani, a Mumbai-based real estate analyst for Citi, predicts that the property bubble is in no danger of bursting, as some analysts have feared it might.

"India's real estate opportunity is genuine, large and will last a long while - a prospect not lost on developers and capital providers," he told the publication.

Certainly one developer is looking to take advantage of this trend, as US real estate management giant Jones Lang LaSalle (JLL) recently confirmed details of a merger with India's Trammel Crow Meghraj. The move, one which is set to boost JLL's interests in a burgeoning market, is perhaps proof of the potential on offer in India, or at least the confidence in it that the big firms hold.

If further evidence is required, the Confederation of Real Estate Developers Association of India and Maharashtra Chamber of Housing Industry (MCHI) are set to host the India Property 2007 exhibition in Dubai over the weekend. Some of the world's most weighty investors are based in the emirate, with the conference showcasing what the market has to offer.

Nainesh Shah, chairman of International Exhibitions for the MCHI, commented: “With the current boom in Indian realty, there is a growing interest among NRIs [non-resident Indians] wanting to buy property back home, not just for residential purposes but as an investment option as well."
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