Real estate boom to gain momentum in 2007

The booming real estate market will gain momentum and is likely to attract foreign investment worth Rs 8,000 crore in 2007, an Assocham study has said. "The real estate boom of 2006 is set to multiply itself in 2007 to get India a foreign capital of over Rs 8,000 crore with leading international investors establishing their presence in the rewarding real estate development," the industry body said in a statement. The sector would provide employment opportunities to over two lakh skilled and unskilled workforce, it said. The chamber attributed factors such as strong economic growth, rising income levels, growing middle class, increasing urbanisation and improving transparency for the resurgence in the real estate sector in 2006. Assocham feels the sector would continue to grow further in 2007 with easy availability of financing. It forecasts that realty sector would grow from 12 billion dollars in 2005 to 90 billion dollars by 2015. "Greater integration with the global economy and the increase of domestic as well as foreign investments are encouraging demand for real estate. Despite ill found doubts of a bubble, foreign investors are lining up," it said. In a bid to encash the booming Indian property market, global players such as Royal Indian Raj International, Blackstone, Goldman Sachs, Emmar Properties, Pegasus Realty, Citigroup Property, Lee Kim Tah Holdings, Salim group, Morgan Stanley and GE Commercial Finance are expected to bring substantial foreign capital into India. Source: Chennai Online