‘Foreign investment in realty driving land prices’

January 14th, 2009 - 6:51 pm ICT by IANS  

New Delhi, Jan 14 (IANS) The influx of foreign investments is responsible for the “sky high” land prices and should be discouraged in the realty sector, a leading domestic developer said here Wednesday.“The foreign investments have done no good to the sector. At the most, they are responsible for the sky high land prices,” Omaxe chairman and managing director Rohtash Goel told IANS on the sidelines of a business meet.

“India has enough domestic fund and demand to support the industry. Therefore I feel that FDI (foreign direct investment) in the realty sector should be discouraged,” he added.

According to him, foreign funds posed a “serious challenge” to affordable housing. “FDIs in real estate do not increase supply and demand for affordable housing. Their entry into this segment will enhance price of land and should be discouraged.”

Omaxe is coming up with 10,000 dwellings in Indore, all priced below Rs.1 million (Rs.10 lakh).

“It will be our first full-fledged initiative in affordable housing. The carpet area starts from 300 square feet onwards and dwellings will be open for bookings by February. We have already got the clearances for this project,” Goel said.

“We have another 10,000 affordable housing unit ready for booking by March. Once the clearances are done we will make a formal announcement,” he added.

Last year, Omaxe said it would invest about Rs.800 billion over the next three to five years to develop affordable housing projects.

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