UAE real estate firms eye Indian opportunities

UAE real estate companies are targeting growth in India as its property sector prepares to post a 30 percent growth rate in 2008.

Despite the current economic downturn, India’s real estate is said to be worth about $16 billion and is estimated to reach $60 billion by 2010, according to research outfit Cityscape Intelligence.

As a consequence a large contingent of regional real estate investors and developers are poised to descend on Cityscape India to further their long term ambitions in the sub-continent.

Dubai-based Limitless is confident about the long term prospects of India’s real estate sector and is showcasing 11 projects including Bidadi, a 4,000 hectare development near Bangalore which will house around 750,000 people.

"India is currently facing a shortage of some 21 million homes, and more than 300 million people are expected to migrate to urban areas over the next 20 years," said Saeed Ahmed Saeed, CEO of Limitless.

And Mohamed Binbrek, Group CEO of Dubai Properties, recently confirmed that his company hopes to expand its development projects into India.

Graham Wood, exhibition director for Cityscape India said: “The internal demand for commercial and residential real estate in India is undeniable. The investment climate may be difficult but developers will benefit from lower land prices, lower material and labour costs.

"Providing that the finance is in place, many developments may be approaching completion after the downturn has bottomed-out.”

Dubai-based real estate developer Majid Al Futtaim (MAL) has also announced it is investigating India as a possible region for investment and development while the investment arm of Ras al-Khaimah also plans a $5 billion business centre at Hyderabad.

“With 70 percent of India’s 1.2 billion people categorised as lower class, the demand for affordable housing is immense and potentially the long term returns for investors and developers is colossal,” added Wood.

This year’s Cityscape India is due to take place at the Bombay Exhibition Centre on December 8-10.