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Funding is imperative to Real Estate since whenever funds are available, projects can start taking shape. The real estate sector has seen turbulent times due to the worldwide economic downturn. It is well known that real estate projects have been seeing low sales due to the downturn.
To counter this, real estate players have been lowering their prices to attract buyers. Helped by the Government’s move to stem the damage to the sector, buyers were beginning to look at the prospect of buying houses since the interest rates were lowered.
The downturn also led to many Private Equity fund houses withdrawing from this sector. This led to shortage of funds and projects could not be completed. However there are factors that can be attributed to the PE funds returning to this sector:
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The Election results bringing in the much needed stability to the country leading to the real estate sector starting to recover.
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The resulting investor confidence in the stock markets due to the Election
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Stocks of real estate companies have seen a rise.
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Real estate companies have taken steps to improve their financial position and have paid off the debts that they owed.
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Indian economy growing to 6.7% in the financial year ending March.31.2009.
With Real Estate brightening up step by step, Private Equity funds have once again shown their interest in investing in real estate projects. Fund houses such as Orient Global, Och-Ziff Capital, Sandstone Capital, HSBC, Standard Chartered Private Equity, IL& FS Realty Fund, TPG Capital and Fidelity has begun investing in Real Estate projects of various developers.
The rising interest shown by the Private Equity fund houses signals that the Real Estate sector will have access to funds for their various projects. When completed, these projects coupled with attractive pricing and being located in fast growing areas will attract buyers. The return on investment will take place as the investor or end-user displays patience.
Expat Properties has both land holdings and apartments, which are attractively priced and located in fast developing areas in South and West India. With investor confidence rising in the Real Estate sector, investing in properties presents itself as a good proposition.
Expat Properties invites you to build a long and fruitful relationship.
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