The Hindu Business Line : Real estate upbeat with 100 pc FDI norms in 2005

NEW DELHI: Relaxation of FDI norms and high demand for commercial property from the booming IT & ITES sector, even in non-metros, raked in the moolah for the real estate sector, which saw a robust 30 per cent growth in 2005 even as increase in cement pri ces drove up the construction costs.

The year started on a promising note when the government in February allowed 100 per cent FDI under the 'automatic route' in the construction and development sector, in order to spur investment in the vital infrastructure sector.

The relaxation saw biggies like Dubai-based Emmar Properties - the largest listed real estate developer in the world - joining hands with the Delhi-based MGF Developments to announce India's largest FDI in realty sector amounting to over $500 million in projects having capital outlay of $4 billion.

Groups evincing keen interest included insurance company American International Group Inc (AIG), High Point Rendel of the UK, Edaw-US, Japan's Kikken Sekkel, Lee Kim Tah Holdings and Cesma International from Singapore.

During the year, India's realty sector not only emerged as the growing target destination for investment at par with China, but it also provided highest 20 per cent of returns on real estate investment as against 10 per cent elsewhere in the Asia Pacific region.

With the economy on an upswing, the emphasis today is on the bridging the massive backlog in infrastructure and housing sectors,'' said CREDAI, an apex body of real estate developers. - PTI

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