Monthly Archives: August 2009

IFCI expands in real estate business

Real estate
Financial institution IFCI will amplify its existence in the real estate business. After serviced apartment project in Delhi, IFCI Infrastructure Development Ltd (IIDL) will launch three similar projects in Lucknow, Guwahati and Chennai.
To woo foreign traveller, IIDL signed a contract with Singapore’s Frasers Hospitality to manage its serviced apartment property named Fraser Suites in the capital city. IIDL is planning to develop a total of two million square feet area in the three cities.
CEO and MD of IFCI Atul kumar Rai said that IIDL would shortly start developing serviced apartments at other locations. He said that the company would also like to buy lands in the auctions of governments land development authority.
IIDL has plans in hand to develop two million square feet commercial space. CEO of IIDL said that if they get other striking proposal to develop residential projects, they would undoubtedly think about them.

Real estate- the best investment destination

Real estate in India
The economic slump had a major impact on real estate. The price has come down over the last few months. People with a huge disposable income can explore investing in real estate for diversification of their assets. Reduced home loan interest rates and lower property prices makes it an opportunity hard to resist.
Some investments are considered safe in times of recession like precious metals and foreign currencies. In this list of investments that are popular during times of financial insecurity, real estate can be included.
Real estate is considered a hedge against forces of inflation. Inflation has led to the rupee value depreciating and property prices travelling upwards. Property investments are usually held over a long term.

Money raising by realty-focused PEs sluggish
Money by realty-focused PEs declined to over a four-year-low level in April-June quarter of this year as institutional investors remained uncertain in committing capital. Investors have turned carefull and are now looking at more established markets. In this quarter, 21 real estate funds made aggregate commitments of 10.3 billion US dollars, down 72.16% from 37 billion US dollars in a year period.
During this time of instability, investors are especially cautious and therefore they are looking towards more established markets, rather than emerging markets.
Anticipating slump in demand amid the global economic downturn, various investors have reviewed their investment portfolios and reconsider their allocations to PE real estate.