FDI to flow into housing sector

FDI to flow into housing sector
Mumbai
The Asian Age Deccan Chronicle

Foreign investment in the real estate is likely to flow into the residential sector in India in the near-term as it has an enormous potential for growth due to the massive unmet housing demand.

A report by real estate service firm Jones Lang LaSalle says, "While risks may be higher for investment in real estate in India than in developing economies, the returns on investment are significantly higher in India.

Speaking on the report, Anuj Puri of Jones Land LaSalle Meghraj said, "Global capital flows are looking for existing and futuristic growth indicators and patterns and India has displayed both to a measurable degree. These factors, coupled with an already discernible return of positive sentiments in the real estate business, will result in enhanced interest by foreign real estate investors."

The report was released at the conference on Turnaround in the Downturn- An insight into the current Real Estate Scenario organised by the Confederation of Indian Industry (CII) here.

Arun Nanda, the executive director of Mahindra & Mahindra, said the revival of the Indian real estate sector lies in providing affordable housing by cross subsidisation and conscious effort on part of the developers to inculcate corporate social obligation.

Calling upon the stake holders of the Indian real estate sector to analyse the reasons of the downturn in the sector, he emphasised that with the reduction in interest rates from 14 percent to eight percent, the sector was now showing signs of revival. He also laid emphasis on development of satellite centres as a means to tackle the issue of growing urbanisation and urged the need to ensure balanced urbanisation.