Small Dubai exposure may save Indian real estate arena

The demand- based Indian real estate industry having
a very little exposure in the overseas markets will sustain
the Dubai shock waves, according to experts.

The government- city owned conglomerate, Dubai- World, 
has interests in real estate, ports, transportation, logistics,
natural resources and the leisure industry.

The firm carries around $ 60 billion in liabilities.

Anuj Puri, chairman and country head, corporate default situation.
However, the sovereign has not defaulted, so the condition is
presently restricted only to real estate. This would not have
a major direct impact on India's real estate market, which is
largely locally driven. Nevertheless, it is conceivable that the
RBI may take a cautious approach in terms of liquidity in the
real estate sector, which would not be good news in light of the
fact that FDI norms for Indian real estate are on the verge of being 
relaxed." 

Almost all major real estate players, including Unitech Ltd,
DLF, India Bulls Ltd and HDIL have confirmed having no
who had plans for the Dubai market are now getting cautious.

For instance, Delhi- based Omaxe is likely to exit its
two real estate projects in Dubai.

Rohtas Goel, CMD, Omaxe Ltd, said, " We will soon
decide on exiting the Dubai realty projects. We had
planned Rs 2,850- crore investment in Dubai. We have
already paid Rs 40 crore to Nakheel as first installment last
year for buying land for both the projects. The possession
of land was to be handed over as per the set timelines.

However, Omaxe has still not gained any rights from master
developer He added, " With global downturn, there has been
a slowdown in Dubai real estate market too. Current developments
may not have large impact on us as we have other exit options
open for us." Nagarjuna Construction is another company that
has a venture in Dubai - a 440- apartment project.
The company is now going slow on it.

Also, Emaar MGF, a joint venture between Dubai- based
Emaar Properties and India's MGF, said its operations are
only in India and the developments in Dubai would have no impact.
" Our business and funding plans are on track," a company statement said.  

Source:India Today