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Dubai developer Damac to invest US$5b in India

It will build houses, offices, shops in Mumbai, New Delhi, Hyderabad, Bangalore

(MUMBAI) Damac Properties, a closely held developer based in Dubai, plans to invest as much as US$5 billion in India over the next three years as a booming economy spurs demand for real estate.

The developer will construct houses, offices and shops in the Indian cities of Mumbai, New Delhi, Hyderabad and Bangalore, chairman Hussain Sajwani said. The first project will be started in 12 months, he added.

Soaring office rents and a shortage of apartments are luring developers including Donald Trump Jr and Emaar Properties PJSC to India. The real estate market is set to grow to US$90 billion by 2015 from US$12 billion, according to Moody’s Investors Service.

Demand for property is soaring as the world fastest-growing major economy after China is poised for 9 per cent growth in the year to March 31, following an average 8.6 per cent average rise over the past four years.

India’s 1.1 billion population faces a shortage of 25 million housing units, according to government data. The government is seeking to encourage the purchase of homes by giving tax breaks and ensuring easy availability of bank loans.

‘We plan to meet the funding requirement from our internal resources,’ Mr Sajwani said. Damac has built waterfront luxury projects in the United Arab Emirates and is investing in Saudi Arabia and Egypt.

 

Source: Bloomberg (Business Times 22 Nov 07)

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