Real Estate India

Recent collapse of Lehman has the Department of Industrial Policy and Promotion (DIPP) and the Reserve Bank (RBI) meeting soon to discuss the situation.

Lehman has $500 million investment in Indian real estate projects. Lehman invested $200 million last year in DLF promoter group company DLF Assets. It has also invested $80 million in Bangalore based SEZ Gandhi City and 40% stake in an IT park project of Peninsula Island in Hyderabad for Rs. 50 crore.

As per Foreign investment norms of real estate, repatriation of funds within three years of investment is not allowed. This was there to prevent investment of hot money by hedge funds and venture capital funds.

The meeting will happen soon to come up with a mechanism to deal with such cases. They will see if permission can be given to liquidate Lehman’s assets in India by waiving the lock-in.

Tags: Building, Lahman Investment In India

Posted under Real Estate India

Tags: Cliff Towns

Posted under Cliff Towns

The Asia Pacific property market is as diverse today as its culture w.r.t. opportunities, risks, capital markets, economics, demographics and business cycles. The fact that more businesses learn and recognize the diversity and variations is clearly another step toward market maturity. As a result, capital inflow is increasing into Asia Pacific real estate markets and real barrier for investors to overcome will lie in locating the right properties against the backdrop of yield compression and scrutiny by regional governments and tax authorities. Many are eager to buy or hold properties in the top three Asian destinations viz. Shanghai, Singapore and Tokyo, rather than selling properties, an indication of strong investment markets.

Ho Chi Minh City of Vietnam is another major development market followed by Shanghai, Singapore, Bangalore, Mumbai and New Delhi. These are hot destinations for Investing in hotel, office buildings and retail properties. There is also a drive for diversification of retail concepts viz. trendy malls, big box, factory outlets, and specialty retailing. One needs to take into consideration many other local factors before investing in risk-prone emerging markets, or results may not be as good.

Residential for-sale and apartment rental sectors also offer investment opportunities based on development prospects as demand for residential property is growing with many people migrating to urban areas. Promising markets for apartment rental investments are Ho Chi Minh City, Mumbai, Bangalore and Guangzhou.

In future, the Asia-Pacific property markets will integrate more with the global economy and property capital markets. With these indicators, emerging trends in real estate investments in Asia clearly projects a bright future for the global economy itself, despite slowdowns in Housing Markets worldwide. Let’s hope it is not just another blind shot.

These are as per a report named Emerging Trends in Real Estate® Asia Pacific 2008 published by Urban Land Institute (ULI) that took into account 20 Asian property markets, opinions of real estate professionals, interviews and surveys with investors, realty developers, property company representatives, lenders, brokers and consultants.

Tags: Property Trends, Realty Trends

Posted under Property Trends