Indian Real Estate: a Lure for High Net Worth Nris
Whatever, could a mall in Ahmedabad, or an office complex in Hyderabad, and say a residential township in Baroda have in common? Simple, the answer to all three is that have all been built courtesy of funds put together by rich Non-Resident Indians.
Given the returns offered by Indian real estate, analysts after carefully studying the realty sector confirm investments through informal funds floated by dollar-rich NRIs are very much on the rise. It is surmised by these same real estate analysts that around $600-million may have come in through such investments in the last calendar year alone. Investments through formal channels may easily have been many times more, though exact estimates are not available.
Akhil Hirani, Managing Partner of Majmudar and Co, a Mumbai law firm says: "We get around five or six such enquiries every week, mostly from NRIs who want to put together a fund to build a property, stay through the stipulated lock-in period and then sell and exit."
Most of the investment, which is usually $10-25-million comes from funds sourced from an extended NRI clan and friends, according to Hirani. Most of the investors, he says, are interested in projects in their native cities, where family or close friends are in a position to oversee their investments.
Several such investments have taken place in smaller cities with large NRI communities, such as, Jaipur, Hyderabad, Vijayawada, Ahmedabad, Baroda and Surat. And, most of the investments are routed through Mauritius, to leverage double tax treaties. Typical investments take place in projects with low costs, and which allow both developer and investor to gain, the former by easy access to capital, the latter from an attractive return on investment.
Over the past three years, investment in Indian real estate has grown rapidly, with annual average returns in smaller cities going up to 50%. A recent study by Jones Lang Lasalle, global real estate consultants, estimates that $ 8-billion of private equity could flow into the Indian real estate over the next 18 to 30-months. And, an Associated Chamber of Commerce study estimates, around 25-million NRIs in a 125-countries are investing in immovable property in India, showing a keen interest in residential properties, rather than commercial ones, according to the study.
For more information on Real Estate Agents, MLS visit Propertiesmls.com
Source: IndiaRealEstateblog
Related Tags: real estate, propertiesmls
None
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t
