Tuesday, July 17, 2007

Fishman sees opportunity in India properties

Developers are seeking creative solutions for coping with falling property yields and rising interest rates. A solution being taken by many developers is to enter riskier markets, such as India and Russia, which have become the hot-ticket items of the day.
At a conference on “Building Trends in the Real Estate Market,” held by Maalot The Israel Rating Company Ltd. and the Chaim Katzman Gazit-Globe Real Estate Institute at Tel Aviv University, Eliezer Fishman said, “In India, land is expensive, but construction is cheap.”
Fishman Holdings is active in India through subsidiaries Mondon Investments Ltd.
“India has a shortage of 23 million housing units,” Fishman said that for historical reason relating to land ownership in India, the critical factor for a project was the purchase of land. “The price per sq.m. is almost the same between different regions, but the yields are another matter altogether. It’s therefore critical to choose the area where you’ll get the highest yield. Once you’ve bought the land, there’s no problem in obtaining financing for a project,” he said. Globes [online] - Fishman sees opportunity in Russia and India properties

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