Real estate developers and agents in India are now offering more solutions
to market properties to Non-Resident Indian investors. Their focus is
geared to target the burgeoning and lucrative market of prospective
Western buyers. As an increasing number of businesses are outsourcing
their IT functions to India, property in commercial hubs such as Mumbai,
is in high demand but it comes at a cost. Renting office space in Mumbai
is even more expensive than in Manhattan. It seems then that there is
good business sense to invest in emerging markets rather than expensive,
established areas such as Mumbai. Rudrapur is reported as one place
that is taking off in terms of investment in business. The government
has made the area a tax free zone and there are over 450 global corporations
planning to set up businesses there in 2008.
According to Liam Bailey, Head of International Research for David
Stanley Redfern Ltd, India is becoming increasingly attractive. 'We
are seeing businesses flocking to the area since the government designated
it as a Special Economic Zone (SEZ). This means businesses pay no income
tax for the first five years and receive a 30% discount over the following
five years.
