Biggest FDI in Indian Real Estate

An Indian origin, Royal Indian Raj International Corporation (RIRIC), a Nevada-based company disclosed the planning to invest $1 billion in real estate India which will be the largest foreign direct investment (FDI) in the newly liberalised sector.

There has been a strategic partnership with New York-based real estate investment banking firm The Greenwich Group International to finance the development of multiple private cities in India.

RIRIC CEO Manoj C Benjamin said, "We have already been working on our inaugural residential project on a 17-acre plot on the outskirts of Bangalore. With the Indian real estate sector in transition and recent landmark legislation allowing FDI into it, the opportunity for participation in this formerly closed market is heightening."

The company is targeting four megapolises - Bangalore, Mumbai, Kolkata and New Delhi by developing large-scale commercial and residential townships because of immense housing shortage.

This investment resulted in to direct employment to nearly 10,000 people and indirect employment to another 40,000 in the next 10 years.

He added,"We have got into a contract to acquire nearly 5,000 acres of land near Mumbai, 3,000 acres near Delhi, 5,600 acres near Bangalore and another 5,000 acres near Kolkata. The final settlement of these deals depended on several factors - chiefly approvals from state governments.”

He also added, “Mumbai alone would need anywhere between 180,000 and 200,000 additional residential units in the next 10 years. India is expected to see an annual shortfall of 20 million housing units till 2011.”

The booming market of real estate India ($50 billion) is expected to grow at 25 per cent annually.

The booming market attracts the investors who are planning nearly 250 new shopping malls by 2008.

The regulation adopted by the central government made the FDI easy which allow the foreigners to bid with local partners and also reducing their minimum land-holding limit from 100 acres to 25 acres.

The investors has Enthused by the liberalised investment guidelines. A slew of foreign builders are rushing to launch projects in Asia's third largest economy.