Singapore firm eyes Indian investment

Kolkata: The Singapore-based real estate developer Far East is looking at drawing an investment of S$150 million (Rs 465 crore) in property from India by this year, Mr Akshay Jain, CEO of Land Solutions, Far East’s marketing partner in India, said.

The total amount of Indian investment in Singapore properties has been rising consistently, he said, emphasising that Indians and NRI’s had accounted for 14 per cent of total investment in the last quarter, up from two per cent over the last year.

“Prices in Singapore have been rising by an estimated 31 per cent over the last three years and it is a good avenue to invest over a two to three year horizon,” Mr Jain said. “There will be a demand for 30,000 residential units with the Youth Olympics to be held in 2010 in Singapore. The price will steadily rise till then, with the developers having planned only 14,000 units, as of now,” he said.

Only a negligible one per cent of Indian investment in Singapore comes from end users.

With the global slump in real estate business coupled with a tightening monetary policy beginning to dampen the Indian market, overseas investment is fast becoming an alternative channel for diversifying portfolio, he said. Interest rate on home loans in Singapore is currently 2.5 per cent for Indian buyers.