INRnews - Indian Real Estate News

Currently, these funds cater to institutional investors and high-net-worth individuals (HNIs). The HDFC India Real Estate Fund (HI-REF) was launched in 2005. It was the first fund that gave individuals and institutions the opportunity to invest in multiple properties through a single-investment vehicle, with the minimum investment size of INR 50 million. JLL estimates that as much as USD 8 billion of private equity could flow into the Indian real estate funds over the next 18 to 30 months.

With factors such as long-term interest rates showing signs of alignment with the developed economies, strong investor sentiments, increasing rentals and improving transparency, the realty funds should continue to remain an attractive alternative investment vehicle for domestic and international investors.

In 2007, an estimated 50 million sq ft of new office space across the seven major metros is to be completed. This phenomenal growth in the commercial and residential real estate markets will further catalyse the growth of realty funds. Realty funds are expected to register double-digit returns on the back of these fast-growing investment options.

View more FDI/Investment stories related to Indian real estate

Jones Lang LaSalle is one of the world's leading real estate services and money management firms, committed to delivering exceptional strategic, fully-integrated services for property owners, investors and occupiers.