Why should NRIs invest in Indian real estate?
India being the fifth largest economy in the world (ranking above France, UK and Russia) is a potential Market. It is also the second largest among emerging nations (These indicators are based on purchasing power parity). The estimated size of organized Indian real estate sector accounts for USD 12 billion of India’s USD 600 billion economies (2%) way less then other mature economies. Relaxation of foreign direct investment rules has expanded the mountain of capital in every sector of Indian economy. The government is making efforts in liberalizing the guidelines and norms for investment through FDI, making them more NRI friendly. Growth in the Indian real estate sector was estimated 30% last year, owing to FDI norms and related growth drivers. By 2010, real estate sector estimated to be between USD 45-50 billion (Source: DSP Merrill Lynch, May 30, 2005). Real estate sector has the potential to touch USD 90 billion in 10 years. An estimate of 5 million homes was sold last year, while 3
