"In the past, real estate in India was considered a risky asset class to finance by lending institutions. This was reflected in the high rate of capital provisioning on loans extended to the sector. Debt financing markets have since evolved considerably. With recent reform and growth of the real estate market, a number of financing avenues have opened up for Indian developers.
Private equity and debt are the most prevalent forms of investments. According to the Venture Intelligence India newsletter, general private equity investments in India have grown from $1.6bn invested across 68 transactions in 2004 to $2.3bn in 147 deals in 2005 to $1.4bn in 69 transactions in just the first quarter of the year just gone.
Although real estate represented only a part of that, its share is set to grow with the liberalisation of foreign direct investment rules and the rise of numerous Indian and international real estate funds.
Several private equity investment methodologies are becoming more popular. Of the various private equity investment methodologies explored internationally, there are a few options gaining popularity among real estate investors in India."
Yes real estate in India is booming. Prices are increasing atleast by 10 to 15% per year on a conservative basis.
Posted by: Website developers | February 19, 2007 at 04:19 AM