MORE than a dozen Indian real estate firms have lined up plans for initial public offers to raise about US$6 billion, buoyed by an 81 per cent rise in the Mumbai stock index last year and as property buyers return. Following are key facts about India’s property market.
# The property market contributes 5 to 6 per cent of India’s gross domestic product, or about US$50 billion annually to the US$1 trillion economy.
# Total foreign direct investment in housing and real estate in India, since investment norms were first eased in 2005, stands at US$7.7 billion, including US$2.2 billion in April-November 2009.
# The Bombay realty index underperformed the main index last year, rising 70 per cent after a slump in the first quarter, versus the market’s 81 per cent gain.
# The major cities of Mumbai, New Delhi and Bangalore have the most expensive residential property in India, with rates comparable to New York, London and Tokyo, due to limited land and the government’s push to develop the services industry.
Source: Business Times, 28 Jan 2010