FIIs see hi-rise in realty | india | Hindustan Times
Today in New Delhi, India
Mar 19, 2018-Monday
New Delhi
  • Humidity
  • Wind

FIIs see hi-rise in realty

The industry expects foreign funds worth up to $2 billion in the next couple of years, reports Prerna K Mishra.

india Updated: Apr 13, 2006 15:41 IST

The opening up of the real estate sector has shot India into prominence as an investment haven for foreign institutional investors, with the industry expecting foreign funds worth up to $2 billion to flow into India in the next couple of years.

While players like IREO and GE Ascendas have already frozen deals, others like Morgan Stanley, Merrill Lynch, Hynes, and Tishman Speyer are out on the prowl.

The office space alone is expected to touch between 100 million sq ft to 120 million sq ft, from the existing 80 million sq ft. While the office space is a tangible indication of the buoyancy in the real estate space, the much-fragmented housing and the nascent retail formats say the same story.

Says CB Richard Ellis, MD South Asia Anshuman Magazine, “We expect more than 25-30 million sq ft to be added to office space every year, taking it from the existing capacity of 80 million sq ft to over 120 million sq ft in the next couple of years.” This will be a quantum shift from the total 30-35 million sq ft of office space in India three to four years ago. The space added in the past couple of years is almost equivalent to that added in the past 50 years.

CBRE has signed JVs with many FIIs for channelising investments into India. They have already aided in struc- turing a New York-based real estate fund worth $150 million for 8.5 million sq ft space for mixed use in Pune - the first fund to come to India after the opening up of the sector.  

International interest apart, the space has gained traction even in the domestic investment community, including various governments. “We have facilitated West Bengal government to partner with DLF to set up a 1 million sq ft IT park in Kolkata,” he said. According to Magazine, India has arrived at the real estate cusp where more office space means more jobs, which, in turn, means more disposable income for buying house and spending at the new format retails.