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.