The Indian Property sector, once considered to be a fragmented sector, is now getting more organized, transparent with elements of global scale professionalism finally seeping in. Stock market floatations for many property developers in India seem to be on the cards.

A tell tale fact is a series of initial public offerings lined (IPOs) up by leading property developers in India, running into nearly $3 billion on a cumulative basis ( table is given below). These India Property related IPOs are likely to be floated in next one year.

COMPANY                                     PROJECTED IPO SIZE

DLF                                                 8,000

Ansal Properties                               2,000

Parsvanath Developers                     1,000

Akruti Nirman                                  1,000

Ahluwalia Contracts                            500

IJM India Infrastructure                      400

DSDKL                                                 75

( Figures in Rs. Crore)

• The general bullishness centered around Indian real estate sector can be well gauged from the fact that since the beginning of 2006, private equity funds (PEs) have invested over $350 million in the sector. According to a report, real estate has become the third most favourite industry for the PE investment in India ( after IT/ITES and manufacturing) and this investment in real estate is likely to go through the roof in next 18 to 30 months -something in the range of a staggering $7-8 billion.

• Financial concepts and instruments like REVF and REIT which are successfully in vogue in developed countries are well on the cards in India with market regulator Securities and Exchange Board of India ( SEBI) presently guidelines for them.

• Special Economic Zones (SEZs) are going to be the next big thing in India which are likely to give a major boost to the domestic real estate industry. The government has given approval for the setting up of nearly 100 SEZs over the period of next ten year. Most of these SEZs are projected to be big-sized ones and will be established in the strategically important locations throughout the country. The case in the point being the SEZ which Reliance is going to set up in Navi Mumbai on an area space of 14,000 hectares with an investment of over $5.5 billion.