Foreign Direct Investment in the Indian realty sector may jump around six-fold to $30 billion over the next 10 years, with the sector projected to grow at more than 30 per cent in the next few years, Industry body Assocham said on Sunday.
Currently, FDI inflows to the sector is estimated between 5 to 5.50 billion dollars.
The domestic real estate market, which currently stands at $14 billion, is estimated to be $102 billion in the next 10 years, when the FDI inflows to the sector would be about 30 billion dollars, the chamber said in a statement.
At present, foreign developers can undertake construction activities on a minimum space of 50,000 sq ft, which may be raised by the government over the years, resulting in more FDI inflows to the sector, Assocham President Venugopal Dhoot said.
The government needs to do away with the multiple approvals at the central and state levels required for setting up townships, it said.
Given the rapid growth of the country's IT sector, which would require space of 200 million sq ft and around 20 million dwelling units, the real estate sector is set to grow exponentially, Dhoot said.
"Increase in purchasing power and exposure to organised retail formats have redefined the consumption patterns for dwelling units due to which retail projects have mushroomed in smaller towns and cities," he added.
As per estimates by the chamber, nearly 30 million sq ft of organised retail space is currently available, while another 90 million sq ft is likely to be added by 2008 from over 265 mall projects.