As the country’s realty sector makes rapid progress, investors across the world are queuing up for a property in India. This is happening in spite of the fact that the land prices in India are rising. The investors across the world want to take advantage while the prices are still within the reach. Even with the rising prices, investing in India seems to be a profitable venture. This is because the country’s policies have become quite liberal and will continue to remain so. The Indian government has adopted a new stand regarding the foreign direct investment (FDI) policies which has encouraged a growing number of countries to invest in
India Property . As a result, many global real estate majors have firmed up their plans for the Indian real estate market. This would mean that the country can expect an investment of around US$ 20-25 billion in the next 12-18 months. Some of the well-known global players like the Carlyle, Blackstone, Morgan Stanley, Trikona, Warbus Pincus, HSBC Financial Services, Americorp Ventures, Barclays and Citigroup among others have all already checked into the Indian realty market. These business organizations are targeting the massive amount of land for sale in India.
In the past, the investment from abroad was not so forthcoming. The investors were wary of the opaque business practices in Indian real estate. The land laws were archaic, mortgage financing was expensive and the quality of the development was poor. But all this has changed for the good. The policies of the Indian government have become quite liberal. The pro-active policies of the government now include looser credit policies and financial liberalization. There is also an increase in mortgage lending and price increase that has helped in reinforcing this investment spree. The rise in India real estate prices is also ignited by huge growth of the Information technology and Business Process Outsourcing industry. As the IT industry grew, employees got onsite and get paid in US dollars and thus many employees earned a lot of money.
