The real estate story in India is growing bigger by the day as it continues to receive an ever-increasing influx of funds. While more than 35 big-ticket foreign funds have already checked in, the first half of 2007 will see at least 20 more funds making an India entry. Meaning, US$ 10 billion of foreign direct investment (FDI) will be injected into the real estate sector.

Merrill Lynch forecasts that the Indian realty sector will grow from US$ 12 billion in 2005 to US$ 90 billion by 2015. Prominent global funds including Carlyle, Blackstone, Morgan Stanley, Trikona and Warbus Pincus are sitting on a total corpus of US$ 12-15 billion, say experts.

Retailers in India--the most aggressive in Asia when it comes to expanding their businesses--are creating a huge demand for real estate. The Jones Lang LaSalle third annual Retailer Sentiment Survey-Asia revealed that India topped the chart with 45 per cent expanding rapidly followed by Greater China at 27 per cent and other South East Asian capitals at 6 per cent.

Global majors in India's real estate

Eminent global real estate business houses like the Philippines-based Ayala, and Signature group, Och-Ziff Capital, EurIndia and Old Lane from Dubai are keen on sizeable investments into India. And, while FDI from the UK is also likely to pick up in the next few months, investors in the US, Israel, Malaysia and Singapore want to be a part of the India story.

Australian real estate consultancy major LJ Hooker, with 700 odd franchisees in South East Asia, has opened its India account with a franchisee in Bangalore

US-based global investment bank Goldman Sachs and Unitech, the largest listed real estate company in India, will set up a special purpose vehicle (SPV) with a corpus of US$ 208.7 million for investments in the real estate sector

DLF Ltd is forging a 50:50 joint venture with Nakheel, a large property developer of the UAE, for two integrated townships in India at a whopping investment of US$ 10 billion

Zurich-headquartered Credit Suisse, the world's leading financial house, is finalising on a US$ 1 billion fund to invest in India's real estate sector

Hilton Hotels Corporation (HHC) announced a joint venture company with DLF Ltd to develop and own 75 hotels and serviced apartments over 7 years

Dawnay Day International, the US$ 10 billion UK-based investment company, plans to invest US$ 1.5 billion in Indian real estate in the next two years

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