‘Indian realty industry set for $30bn foreign investment’June 13th, 2008 - 7:52 pm ICT by IANS
New Delhi, June 13 (IANS) India’s booming realty industry will attract foreign direct investment worth $30 billion over the next 10 years, with an annual growth of 30 percent, says a study by a leading industry lobby released Friday. According to the projections by the Associated Chambers of Commerce and Industry (Assocham), the total size of the industry will grow from $15 billion to $102 billion in this period.
A foreign investment component of around $6 billion has also contributed to the growth of the Indian realty industry so far, the chamber said.
“Currently, the foreign developers can undertake construction activities on a minimum space of 50,000 square feet, as a result of which Indian real estate sector could achieve foreign investment of around $6 billion,” Assocham president Sajjan Jindal said.
The chamber feels the ceiling of 50,000 square feet imposed on foreign realty companies could be enhanced to 200,000 square feet in a gradual manner over the next decade, which could see more overseas capital inflow to the sector.
“The only problem that the real estate sector is currently confronting is that of approvals for setting up townships, which has the involvement of the centre and a number of state agencies,” Jindal added.
This, the chamber said, must be simplified.
The Assocham said the realty industry in India is set to grow manifold, with software and outsourcing alone expected to require about 200 million square feet space across the country.
This apart, the residential housing sector also faces a shortfall of 20 million dwelling units which needs to be bridged. The urban centres need some seven million such units.
Another driver for the realty market is the growing retail segment, which would need 100 million square feet of space for the 300 mall projects coming up in the country by the end of the year.
Of this, 20 million square feet each will be developed in Delhi and Mumbai, around 10 million square feet in Ludhiana, 5.8 million square feet in Chandigarh, and 3.5 million square feet in Ahmedabad.
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