Dollar flow to realty mkt to grow over 3x by 2010

The dollar flow into India's property market is set to grow over three times by 2010. Private equity firms remain optimistic about the country's real estate sector. UK-based, Trikona Capital alone, is gearing up to invest as much as one billion dollars each year, over the next decade, reports CNBC-TV18. 

When it comes to property, there seems to be no turning back for private equity funds from Indian shores. According to Ernst & Young's latest report on the property market, investments in realty will touch USD 10-15 billion by 2010. 

AIM-listed Trikona Capital says it will invest over USD 1 billion in Indian property over the next ten years. Trikona has already invested USD 1.5 billion in various projects across the country over the last one year.

An 8.2 million sq feet IT SEZ in Gurgaon and a project worth USD 22 million in Mumbai are among its current projects under construction. In the hospitality space, Trikona plans to fund 100 hotels over 3- 5 years.

While two hotel properties in Mumbai and Ahmedabad are ready, 18 more are underway in cities including Pune and Goa. With an expected annual return of 25%, Trikona continues to be upbeat about Indian real estate.

“We are very optimistic and bullish. The underlined fundamentals, the growth and the demographics are there. It is internally accrued, which leads to the largest incremental return; but you need to build your own ecosystem, in order to survive in india,” said Ashish Kalra, MD, Trikona Capital.

Though Trikona finds cities like Delhi, Mumbai and Hyderabad the most lucrative, it is gradually spreading its investments to city suburbs such as Gurgoan, Greater Noida and Thane.