While investment in Indian property is currently only available to non-resident Indians (NRIs) and people of Indian origin (PIOs), property investment company Assetz India has just launched a solution for all investors looking to capitalise on the country's property boom: Indian Real Estate funds. Launching in September, these will be accessible to all investors, and will be available on a broad range of property.  Each fund will require a minimum investment of £25,000 and will look to raise £10m-£50m, with target minimum returns of 20-25 per cent. The funds are available to high-net worth individuals, discretionary and institutional investors.

Are such returns achievable? Apparently so. Naren Cox from Churchill Solutions comments, "Prices went up by 30 per cent between mid 2006 and mid 2007 and it is still possible to buy an apartment from £13,000."

Nick Booker, Managing Director of Assetz India, agrees: "Property investment and Indian property prices are booming. Before the Industrial Revolution, India had the largest economy in the world.  Economic reforms, the IT revolution and access to investment capital has resulted in new opportunities for employment and rising standards of living."

Boasting one of the world's largest economies, India has become an increasingly important destination for western businesses. The high amount of investment both from inside and outside the country is fuelling rapid economic growth, which in turn is creating a great knock-on effect on the Indian property market – billions of dollars of investment has been pledged by well-respected investment companies such as Morgan Stanley to property developments.

Due to the demand for Indian property investment opportunities, an additional 10-billion square foot of housing is expected to be required over the next five years to cater for new residents moving into Indian cities, with a further 400-million square foot of new office space also expected to be needed in the next eight years.

The average price for an entry-level Indian property investment in one of the country's emerging cities is around £30,000 for a 1,250 square foot two-bedroom flat.  Assetz currently has projects under way throughout the country, ranging from £15,000 homes to £1million golfing villas, initially focussing on residential apartments and high-yield tenanted commercial units. Several schemes are already available off-plan. 

Le Gardenia in Goa is an Indian property development of serviced apartments and villas close to Mandrem Beach, built with the local Indian market in mind to cater for the soaring demand for holiday homes. The developer is offering a guaranteed rental return of 11 per cent for the first three years.

At the other end of the market is Jaypee Greens (pictured), a PGA golf course right in the heart of the up and coming city of Greater Noida. The prices are under half the level of similar golf properties in Europe with homes starting at £100 per square foot.

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Related articles about Indian property:
Property in India ready to Goa
India - Country guide

For more information about Indian property:
Assetz
Churchill Solutions

Article first published 17 August 2007