ASSOCHAM Predicts $ 30 bn FDI in Real Estate
Industry body ASSOCHAM expects Foreign Direct Investment in the Indian realty sector may achieve six-fold to $ 30 billion in the next 10 years. According to ASSOCHAM the sector is expected to grow more than 30 per cent in the next few years.
Presently, the flow of Foreign Direct Invest in Indian Realty Sector is estimated at around 5 to 5.50 billion dollars. The domestic real estate market stands at $14 billion, is expected to be $102 billion in the next 10 years, when the FDI inflows to the sector would be about 30 billion dollars.
Venugopal Dhoot, President, ASSOCHAM expected that foreign developers can undertaken construction activities on a minimum space of 50,000 sq ft, which may be raised by the government over the years. Currently, the domestic real estate market is expected to be worth USD 15 billion, with an FDI share worth USD 6 billion.
The government needs to do away with the multiple approvals at the central and state levels required for setting up townships. Seeing the instant growth of the country’s IT sector, which would require space of 200 million sq ft and around 20 million dwelling units, the real estate sector is set to grow exponentially, Mr. Dhoot further added.