Property Investors to Look to India During Credit Crunch
Sunday, May 4th, 2008 
Posted by Overseas Property Mall in Merrill Lynch predicts a 700% increase in Indian property market by 2015
Changes in Indian property law will allow UK investors to take advantage of the predicted seven fold increase in the Indian property market. Navyroof.com - the company that brings investment opportunities from the most up and coming areas of India to investors in the UK - has been quick to present Rudrapur to UK investors after the change in Indian investment laws. Units start at just £28,950 (€ 36,735).
Rudrapur is situated 250km north east of Delhi in Northern India, near the Himalayas. Chosen with care - on the basis of its many merits - this 4,200 acre development will employ 300,000 people upon completion. It will be home to some of the world’s and India’s leading manufacturing companies attracted by tax incentives, availability of skilled labour force, cheap energy costs and excellent transportation links.
With a large influx of people to Rudrapur, a severe housing shortage can be expected. The Government of India has already reported a 19.8 million unit housing shortage in the country, offering a huge investment potential for UK property investors looking for options as exorbitant UK property prices and the credit crunch limit investment in the UK.
Andrew Fassnidge, Managing Director of Navyroof.com said, “With the UK market in decline and investors increasingly looking further abroad, India is a very attractive proposition. ‘India Inc.’ has invested approximately £1 billion (€ 1.27 billion) in Rudrapur, making it the next big address for industry. What Bangalore is to IT, Rudrapur will soon be to manufacturing.”
He added, “With the law change it is now possible for foreign buyers to invest in India and the Indian property market is primed for a phenomenal boom. Merrill Lynch has predicted the property market will increase from a value of £ 6 billion (€ 7.63 billion) in 2005 to £ 45 billion (€ 57.19 billion) by 2015. Capital appreciation will not be overlooked by the astute investor here.”
Seminars will be held by Navyroof.com in the coming weeks to give potential investors more information about these properties and investing in India. The next seminar will be held at Comfort Hotel Harrow, by Harrow at 7pm on the 6th of May.
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This entry was posted on Sunday, May 4th, 2008 at 9:40 am and is filed under Press Releases. You can follow any responses to this entry through the RSS 2.0 feed.
One Response to “Property Investors to Look to India During Credit Crunch”
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riathareja Says:
May 13th, 2008 at 11:34 amIndia has “enormous potential in all its property investment categories”. Strong population growth, a large pool of qualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%.India is the prime destination for IT services outsourcing. In the coming five years, at least 55 million m² of extra office space must be completed in the premium office segment alone. Property investments in India are not risk-free. Market transparency is far behind European or US standards. It is therefore vital for foreign investors to have a professional local partner. The lack of liquidity and upward pressure of pricing remain the main concern within the market.The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???
