Retail and residential development is growing even faster !!

The building surge is modest compared with China, where 25 million sq. ft. of commercial and 200 million sq. ft. of residential space will be built this year in Beijing alone. But experts think Indian real estate has as much potential as China - especially if the government removes a tangle of restrictive regulation. The investment hot Indian real estate spots now are the tech-driven growth centers of Bangalore, Mumbai, Hyderabad, Chennai and Gurgaon. The real estate boom in Indian real estate has also hit second-tier cities such as Pune in the west, Jaipur and Chandigarh in the north, and Kolkata in the east.

Even those in the business are surprised at the rapid runup Indian real estate in prices - and worry about a correction. "It's madness, especially with all the unplanned development," says K.G. Krishnamurthy, chief executive of the HDFC Property Fund, one of seven new private equity funds focused on real estate that have launched in India in 2005. Nearly $1 billion has poured into the funds so far this year.

Investment in Indian real Estate

After new regulations for foreigners to directly invest in Indian real estate, many institutional and private real estate investors have established joint ventures or opportunity funds to develop office, hotel and residential projects. While the rewards could be handsome, these firms are also taking on significant risks. The Invesment in real estate market in India is not as transparent as it is in US, construction quality is substandard compared to other countries, and bureaucracy and corruption can endanger new projects and create roadblocks to obtaining approvals.

U.S. investors are attracted to investment in Indian real estate because of the insatiable demand for office space, residential and hotel space. The seemingly endless demand, coupled with little or no supply of quality assets, has boosted internal rates of return for new development projects to more than 20%, according to industry experts. Most development opportunity available to foreign investors in india real estate is in the office space, categories of residential and hotel sectors in Bangalore, Hyderabad, Mumbai and Delhi.

Office space in Growth.

Trammell Crow Meghraj, international realty consultants, recently launched in Mumbai the TCM Knowledge Centre’s latest strategy paper “Changing Dimensions --- Emerging Themes of Office in Indian Real Estate Markets.”

Addressing the media on the occasion, Anuj Puri, Managing Director of TCM, and Tanaji Chakrabarti, president of TCM Knowledge Centre, revealed that the paper analysed the evolution of office space in the last 10 years and projected the course it will follow in the coming years. It also stated the implications of these trends and dynamics for real estate occupiers of office space sector.

After a decade of growth, realignment, consolidation and expansion in the office space sector, it is vitally important the understand the contemporary dynamics in order to correctly anticipate occupier choices in the near future. They further opined that the emergence of tier-II and tier-III cities and of special economic zones (SEZs) are the two aspects that would define office space sector during the days to come.

INDIAN REAL ESTATE

India is the hottest destination in the world with regard to its booming property market as many foreign companies as well as Indian industries have diversified their portfolios and made a bee line for Indian real estate for availing the benefit of boom. Each company has a geographical stronghold, but there are some bigger companies, which have presence on national level. There are innumerable agents, brokers, architects, property consultants, builders and home finance companies in the metros and smaller cities. Please visit our site www.zameen-zaidad.com to find updated Indian real estate listed for buying, selling, construction, renting, leasing of house, land and property in India. Enhance your knowledge of real estates in India, with in-depth reports, surveys, analyses and expert views on a variety of real estate issues. Please visit our site www.zameen-zaidad.com before you make any investment in Indian real estate.