FDI in real estate to touch 26 per cent by March 2007: ASSOCHAM
Our Corporate Bureau
20 November 2006
The growth of foreign investments in the real sector will come from the growing interest of global real estate players in the Indian real estate market and increasing demand of office space particularly in the IT and BPO sector.
The report also says overseas investments will also find larger presence in Indian SEZs and shopping malls that will naturally fatten their share in real estate market.
It says that the real estate market is currently growing at 30 per cent per annum and offering maximum returns to investors. The domestic real estate market, which is presently estimated at $16 billion (Rs72,496 billion), will increase by over by three and a half times and touch $60 billion (Rs271,860 crore) by 2010.
Since, ASSOCHAM expects cut throat competition to emerge between domestic and overseas investors in real estate, the study forecasts that of the estimated $60 billion size of the real estate market in India, the share of foreign investments will be
FDI IN REAL ESTATE IN INDIA (in US$ billion)
| Year | FDI | Share of real estate in FDI |
| 2003-04 | 2.70 | 4.5 per cent |
| 2004-05 | 3.75 | 10.6 per cent |
| 2005-06 | 5.54 | 16 per cent |
| 2006-07 * (estimated) | 8.00 | 26 per cent * |
between $25 and $28 billion by 2010 (Between Rs113,25 crore and Rs126,868.
