Will Indian Real Estate Industry Shake In Dubai Crisis?

A widespread apprehension has spread across the real estate Indian industry as to whether the ongoing Dubai crisis will shake it

. Reportedly, the real estate industry along with the oil and other major industries which control the financial nerve of the Middle East is in crisis and there is a fear in India that its it will have detrimental ramifications in the Indian Industry. However, the widespread apprehension notwithstanding, the investment and infrastructure development companies in India are savvy and sanguine that they will remain unaffected by the Dubai crisis. This is because, they aver and argue, the Indian property market has only very limited exposure to the Dubai market and it remains with its insular operations. Though their assertions and assumptions exude confidence, the real estate stocks along with the rest of the market at first dipped a little, though recovered later.

The apprehensions as to whether the Indian real estate Industry will shake in the Dubai crisis seem to be out of place when we consider the averments of industry veterans. They hold that the effect of Dubai on Indian market is two-fold. In the first place, some developers in Indian had plan to invest in Dubai. Secondly, The Government of Dubai and other Middle East infrastructure developers wanted to start project in India. However, Anuj Puri, chairman and country head of the international real estate consultant Jones Lang LaSalle Meghraj avers: This would not have a major direct impact on Indias real estate market, which is largely locally driven. Further, he adds Dubais real estate market was not sustainable in the long-term, as it was not driven by end user demand. The executive director of the Indian real estate major DLF, Rajiv Talvar says: Our contacts with Dubai-based entities were minimal. Luckily for us, we do not have any exposure to that market. The one deal for which we were negotiating fell through. The plans to enter Dubai have been postponed for a while, said a DLF spokesman.

Revelations of other Indian real estate majors as to whether real estate properties in India,industry will shake in the Dubai crisis are also hopeful. Pradeep Jain of Parsvnath Developers and Sanjay Chandra of Unitech triumphantly said that they have nothing to do with any Dubai-based entities. However, another construction major Omaxes subsidiary Rohtas Holdings (Gulf) are reported to be in the early stage of two residential projects in Dubai. Also, the Mumbai-based builder, Hiranandani Group is in the midst of the construction of the tallest residential project of the world, the 90-storey structure, 23 Marina Dubai. Hopefully, officials at Hiranandani say that the project has been very well received with only 15 percent of work remaining and 30 percent of the payment outstanding.

by: Josephsmith

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