INRnews - Indian Real Estate News

Dr.Seek was speaking at the FICCI - International Real Estate Summit 2006.

While the foreign players have to adapt to local market requirements and conditions, the domestic players have to face up to greater competition which could in turn result in a proliferation of collaborative opportunities between the domestic and foreign investors. Most real estate institutional investors are now looking to increase their exposure in Asia, more so in emerging markets of China, SE Asia and India because of the benefits of global diversification, the investment arena in the mature markets have grown increasingly competitive and the pull factors of the Asian markets.
 
However, Dr. Seek cautioned the global investor on practical difficulties involving Foreign investment regulations; market transparency; local market practices related to leasing terms, land titles; building standards, lack of suitable stock for investment and legal, tax and currency issues relating to enforceability of laws and contracts, repatriation of profits and changes in tax policies.
 
Looking at the future prospects, Dr. Seek said,“India will develop its own pace within its unique framework. Like all other property markets, India is expected to go through cycles and there might even be the risk of overheating due to the weight of capital which could lead to some disruptions in demand and supply fundamentals in the short to medium term. In the long term however, we remain confident that India’s real estate markets will continue to improve in line with its strong economic development potential.”