Your Investments

You save for your future. For your children and their children. You save in investments that earn you interests and also give you growth. Land is always a goldmine for investment. Need options? Gachibouli and Samshabad, which are the next big places after city's hotspot Hi-tech city. Where you can start off with a reasonable price tag in land investments and wait for big returns to flow in.  It's happening with a lot of blue chips, corporates and also investors. What about you?

A study by a rating agency ICRA shows that the construction industry ranks 3rd among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. After agriculture, the real estate sector is the second largest employment generator in India.

NRI's and Global Indians are now looking to invest especially in Indian real estate industry. The boom in Hyderabad is buying property and then selling for quick profit or to keep property for the long term to take advantage of tax incentives and capital appreciation, everything is possible at ease with Magadh.

The size of the real estate industry in India is estimated by FICCI, to be around US$ 12 billion. This figure is growing at a pace of 30% for the last few years. Almost 80 % of real estate developed in India, is residential space and the rest comprise office, shopping malls, hotels and hospitals. This double-digit growth is mainly attributed to the off-shoring business, including high-end technology consulting, call centres and software programming houses which in 2003-04, is estimated to have accounted for more than 10 million square feet of real estate development. This is the ideal time to invest in the country as policy makers have begun to emphasize on developing adequate infrastructure for the country. Real estate companies would also do well to maximize their own performance and operational efficiency.

The Foreign Exchange Management Act, 1999 (FEMA) is the gateway legislation for all inbound and outbound investments. The decision to liberalize the FDI norms in the construction sector is perhaps the most significant economic policy decision taken by the Union Government. Until recently, only Non-Resident Indians (NRI's) and Persons of Indian Origin (PIO's) were permitted to invest in the housing and the real estate sectors. With the recent policy announcements, Foreign investors other than NRI's and PIO's are allowed to invest only in development of integrated townships and settlements (with minimum area of development norm) either through a wholly owned subsidiary or through a joint venture company in India along with a local partner.

Investment by NRI/PIO's in India can be made either by way of acquisition of immovable property and also as an investment in capital of entities carrying on Real Estate Development and Construction business.