Released on = January 3, 2007, 12:52 am

Press Release Author = RNCOS

Industry = Real Estate

Press Release Summary = Indian real industry has been witnessing tremendous growth
since the government allowed 100% foreign direct investment in the construction
business from March 2005.

Press Release Body = Real estate market, which is about US$ 16 Billion at present,
shall reach nearly US$ 60 Billion by the year 2010. And, approximately US$ 28
Billion of this will likely be provided by foreign investments in this sector. This
information was revealed by a recent study namely \"Future of Real Estate Investment
in India \" published by ASSOCHAM (Associated Chambers of Commerce and Industry of
India).

The main reason behind this boom in Indian real estate industry is said to be
government’s approval to allow 100% foreign direct investment (from March
2005) in this sector. Prior to this, only NRIs and people of Indian origin could
invest in real estate and housing sectors in India. Experts suggest that more
companies will be attracted to India in the years to come, as a large number of
Fortune 500 companies are present here. Therefore, more corporate space will be
required by these companies and dividends will increase for investors in this
sector. At present, about 70% of foreign investors in this business are making huge
profits and the rest are breaking even.

Shopping malls and controversial SEZs (Special Economic Zones) that detractors
allege the government is misusing for selling prime-land at throwaway prices to
large industrial houses will also attract foreign investment in this sector.

Property commentators are stunned by the manner real estate prices have almost
doubled over the last three years in metropolitan cities like Delhi, Bangalore,
Chennai, and Mumbai. Besides big cities, with growth of above 50%, smaller cities
are also observing healthy growth in this sector. Corporate real estate rush is
observed in almost every part of the country, even the cities in Himalayan region
such as Mussourie, Shimla, and Dehradun aren’t untouched by this. Major
companies are developing vacation homes and resorts in these cities.

As per a Research Analyst\'s view at RNCOS, who has recently researched a report on
“Opportunities in Indian Housing Sector (2006-2007)\", unless there’s a
revolutionary change in market conditions, flows of funds into Indian real-estate
sector from foreign investors will continue for at least a couple of years from now.

Key issues and facts analyzed by “Opportunities in Indian Housing Sector
(2006-2007)” report include:

- Get an insight into the trends in market performance.
- Pinpoint sectors of growth and identify the driving factors.
- Housing industry is promoted and supported by housing finance companies in India.
- States in India will have the highest demands for the houses by the year 2010.
- Key Challenges and Strategies in this sector.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

For more information visit: http://www.rncos.com/Report/IM076.htm

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Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com