India real estate investment hope for global real estate fund

Despite increasing interest rates, opinion of a real estate asset bubble and many other factors i.e. US subprime credit defaults the overseas real estate funds in India are increasing.

Around $2.4 billion have been raised by the overseas funds and it is believed that another $1.1 billion fund will flow in India real estate investment before the end of this year.The strong return from real estate firms give a boost in raising the real estate fund in 2007.

A London based Private Equity Intelligence (Preqin) pointed out that as compared to $72 billion funds in the whole of 2006, an aggregate $59 billion have been raised in 2007. There are more funds around $105 billion for year 2008 in the sector across the world.

The overseas investors are not afraid of corrections or short-term slumps. They believe a better scope of growth in Indian real estate.