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July 03, 2006

How companies are latching on to the real estate boom

In case you just landed back from Mars, real estate in India is booming. Businessworld has a cover story on how companies are latching on to the boom.

Indian companies, funds (both Indian and overseas), and entrepreneurs are buying land as if there is no tomorrow. According to estimates, they are in the process of acquiring some 400,000 acres of land. That’s four times the size of Mumbai, double the size of Hong Kong, and slightly more than the size of the National Capital Region (NCR).

The Baba Kalyani group, in a consortium, is buying around 22,000 acres and its flagship Bharat Forge wants to buy 5,000 acres for an SEZ. The Mahindra group will own 10,000 acres once its buying spree is over. Infosys will add another 845 acres to its existing land bank of 1,300 acres. The list is almost endless. Adi Godrej, who has 7 million sq. ft under development in six cities, sums up the mood: “The larger the project, the more interested we are.”

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.