2008-Jul-13 - Four key Asian property markets at a glance

India Since India eased its rules on inward investment in the construction industry in early 2005, foreign investors have earmarked an estimated US$20 billion for property, quadrupling in land prices in many areas.

But government figures show only about $2 billion actually spent in the last three years.

Funds have complained that Indian developers slapped inflated price tags on themselves, their land, and projects.

However, developers are starting to offer appealing deals as banks tighten lending and a stock market slump shuts off public share offerings, which should benefit funds run by the likes of Morgan Stanley, Citigroup and Merrill Lynch

Indian banks are banned from lending for land purchases and the central bank has raised the cash reserve ratio several times this year, which could crimp other loans and raise lending rates from the 12-13% charged now.

The failure of the Dubai-backed developer Emaar MGF Land to push through a $1.6 billion initial public offering in January was a defining moment for developers.

Pune-based developer Vascon Engineers Ltd has since postponed its IPO and Unitech Ltd has shelved a planned $1.5-billion private placement, according to property analysts. more...