india- riding high

There may be uncertainty across the globe due to the economic slowdown but the PE Deal environment in India is looking promising. India’s burgeoning middle class population flash with growing disposable income has generated investor interest in Indian market. The surge in PE investment is the results of whose returns of over 25% to 30% which Indian firms provided to investors Thomson Financial a leading information provider on companies markets and industries world wide, revealed that India has immerge as the hottest PE investment destination in 2007, second only to Japan in Asia Pacific region. 

FINANCIAL REQUIREMENT

Financial resources required for real estate development of all sorts annually for the next 10 years is about $100 bn-Rs 4 lakh cr per year and Rs 40 lakh cr in a decade. While investment of this magnitude is expectede. To solve gaps in housing and commercial space a sizeable share should come from; Equity through Public Issue: Foreign Direct Investement RealEstate investment Mutual fund; Venture Capital; and Bank Loan

Reality Bites in Indian real estate

In recent times no other sector has generated the kind and amount of interest, nationally as well as internationally as the booming realty sector in India has. A surge in demand for 
Resident as well as commercial property has been seen the domestic realty sector record a “super” growth of over 3o% during the past couple of years – a rate hardly any other sector could rival. It is expected to growth at a robust rate of over 8% during the last two years. Countinued growth of I T and ITES industry, a happening retail sector, thrust on infrastructure development and special Economic Zone (SEZs), rising disposable incomes a change in the midest of traditional India middle class towards owning a house and last but not the last, a slew of reform measures that include 100% FDI in construction and serviced land development. No doubt they all have played a vital role in te revival of what was once almost a moribund sector. Against this backdeop, The analysted invited experts to share there perspectives on the sector and related issues.

HEADLINE

The Blyrealstate sector has never had it so good. Indeed, the sector grew up by leaps and bounds in the last few years. Compare with Indian realstate Billions of dollars worth of inv estment were pumped into the sector as investors, local as well as foreigners, chased the :build India story However of late the odds are only adding up against the sector. The mortgage crisis in the us and the subsequent global liquidity crunch and now the growing inflationary to its highest level in decade combined with hardening interest rates, threaten to make the going tough for the domestic real state sector in the days to come amongst the positive are the facts the India need more cities more power plant bridge flyover and roads a lot of infrastructure . What is the ground reality for Indian realty.

BLY Real state - Boom or Bust?

So, is there any bubble in the Bareilly real estate sector ? It is yet to be seen. Every boom, irrespective of the nature of the sector, is grounded on a strong economic sense of demand and supply conditions As the market will remain on a high platform over next few year. Future prognosis take physical appearance and the recuperation is continued further. In this stage, the price rise would be sudden and it draws several speculators who don’t have the staying capability. This improvement takes the shape of a full – blown bubble that breaks at some point, bringing down even genuine players.

Investment opportunities

CHALLENGES AND BOTTLENECKS IN REAL ESTATE SECTOR

Despite the announcements of large-bud-get ambitious projects, the deployment level remained low. Building efficiency was lacking and no attention was paid on creating housing infrastructure for the deprived. Moreover, the sector was encountering big issues

Like tenancy laws, high transaction cost, unclear ownership of titles archaic legislation

And high stamp duty. FDIs (foreign Direct Investment) in real estate have only a small share in the total investment, as there are limitations like a lock period of minimum three years a minimum of 25 acres of land to be developed and conditional exit. These risk factor would probably remain as such in the coming year and should be considered before

Investing in real estate. However the Indian real estate sector does offer immense investment opportunities. Well this is not for opportunistic investor but for core players and those who are trying to boost the returns on their investments. The Indian realstate market lacks transparency. The new players are trying hard to mend the transparency

Quotient, but it’s still difficult to extract consistent and reliable information from the BLYrealestate market.