Thursday, November 22, 2007

Gulf realty firms to invest $50 bn in India

Even as property giants such as Emaar, Nakheel, Gulf Finance House and ETA Star from the Gulf move ahead with their plans, the region�s half a dozen other real estate companies have set their eyes on the country.

While companies such as Damac Properties, Tanmiyat Group, Al Badie Group of Abu Dhabi are planning to launch their projects, ETA Star and Dubai World�s Limitless are planning to expand rapidly.

According to estimates, more than $50 billion is expected to flow in the Indian property market in the next two-three years.

While Emaar MGF has announced a $12 billion investment, Nakheel has inked a $20 billion deal to develop townships in the country. Gulf Finance House is spending $2 billion with its partners to develop Energy City at Navi Mumbai.

According to industry estimates, 40 per cent of the country will be urbanised and comprise 300 million of the population by 2030.

Says Hussain Sajwani, chairman, Damac Holdings, the parent company of Damac properties: �The numbers of upper middle-class and rich populations are growing in India and with it the demand for quality housing is also increasing. We will tap this potential.�

The $30 billion Damac Properties is planning to invest $3-5 billion to develop high-end residences, office complexes, SEZs, among other things.

Damac is eyeing at Mumbai, Chennai, Bangalore, Hyderabad and tier-II cities to start its projects and is confident of launching them in the next 12 months.

Tanmiyat Group, another multi-billion dollar company, is planning to launch composite property developments in Bangalore and other metros. Bharat Thakker, managing director, Tanmiyat Group, is confident of replicating its $3.8 billion Dubai Living Legends project in India.

Anshuman Magazine, managing director of property consultancy firm CBRE South Asia, says: Several West Asian companies are closely looking at the Indian market due to closer geographies, traditional ties and huge potential for investments. They have all the capabilities and they will invest in the markets which will get them highest rate of returns.

The developers such as ETA Star Properties and Dubai World�s Limitless are looking at middle and low-income housing to tap the demand-supply gap in the housing sector, which is pegged at 40 per cent.

ETA Star, which is developing 5 million sq ft of at Chennai and Bangalore, is looking at another 20 million-30 million sq ft of development in Kochi, Coimbatore and Madurai.

source

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