INVESTMENTS pouring into Indiaâ€™s hot property market from the Gulf
region have crossed the $35-billion mark. The combined value of the
various real estate projects being developed by Gulf-based real estate
firms has touched $37 billion or Dh 135.79 billion.
According to analysts, the yield on real estate investments in India is between 15% and 18%, making it a stable investment destination. It therefore comes as no surprise that real estate majors like Nakheel and Emaar MGF have committed $22 billion between them towards property developments across the country.
â€œThe growth today is in India. While other regions too are lucrative for real estate investments, India stands out because of its sheer volumes,â€ said Anurag Mathur, deputy managing director of Cushman & Wakefield, India.
Industry experts say the investments by Gulf-based firms would cross $50 billion by the year end. Incidentally, the countryâ€™s real estate and construction sectors attracted foreign direct investments (FDI) to the tune of $3 billion in the previous financial year, out of a total FDI of $19 billion. The $37 billion investments so far roughly account for 11% of Indiaâ€™s projected infrastructure spend of $350 billion, an amount the country is expected to spend over the next five years to improve its infrastructure.
â€œThe last few years have seen several private real estate players from the Gulf enter the country. Many of these firms, with global operations, invest in Indiaâ€™s real estate market for theyâ€™re looking to hedge risk,â€ said retail and real estate analyst Susil Dungarwal.
Fueling this growth are companies like Emaar MGF, which announced its plans to develop SEZs, residential projects, hotels & malls and hospitals in the country at an investment of $12 billion. Earlier this year, leading real estate developer DLF tied up with Nakheel to develop two townships in the country at a cost of $10 billion.
Similarly, Dubai-based developer ETA Star Properties announced a month ago its plans to develop a $923 million IT park at Chennai, taking the groupâ€™s total investment value in India to $4.35 billion so far. In the pipeline is the Gulf Finance House promoted $395 million Energy City India, being modelled on Energy City Qatar. This project, currently at the equity raising stage, will occupy a 600-acre site in New Mumbai.
India has grown to be a highly regarded destination for international trade in recent years, and the pandemic has only caused greater interest in India in this aspect. According to figu More
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