The chairman and MD of a leading Indian domestic developer has blamed foreign direct investment (FDI) as the reason for land prices accelerating.

Rohtash Goel, chairman and managing director of Omaxe said
“The foreign investments have done no good to the sector. At the most, they are responsible for the sky high land prices,”

“India has enough domestic fund and demand to support the industry. Therefore I feel that FDI (foreign direct investment) in the realty sector should be discouraged,” he added.

According to him, foreign funds posed a “serious challenge” to affordable housing. “FDIs in real estate do not increase supply and demand for affordable housing. Their entry into this segment will enhance price of land and should be discouraged.”

While this is a valid point to some degree it should also be pointed out that some of the major Indian developers such as DLF and Unitech, have also played a major role.

They have speculated to varying degress and are hence in so much trouble now. It should also be noted that without the FDI inflows India’s growth story may not be the talking point it is today.

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Tags: affordable housing, DLF, FDI, land prices, Omaxe, Unitech

This entry was posted on Wednesday, January 14th, 2009 and is filed under Property in India. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.