By Accommodation Times Bureau
Mumbai: According to the survey report conducted on global financial crisis, from April 2009 to December 2011 (Q1 FY10 and Q3 FY12) the foreign direct investment (FDI) in the real estate sector has plunge by 92%.
The real estate consultancy Knight Frank’s survey reports said that FDI in real estate declined by 92percent and its share in total FDI shrunk from 16.83 per cent to 1.94 per cent during this period.
The survey report further said that, “Since 2005, 21 realty companies have raised Rs 213.06 billion through initial public offer (IPO) and follow on public offer (FPO). Of which Rs 145.74 bn or 68 per cent was raised alone in 2007, post the opening up of FDI in real estate sector. This route of raising money witnessed a slump in the immediate next year due to global financial crisis of 2008.”
Whereas, in 2011 has witnessed of a high property prices, high interest rate and low sale, the report added.