Tuesday, March 18, 2008

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.

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