Ever since the Overseas Indian Facilitation Centre was launched last month, queries from NRIs on investment in real estate and the stock markets have poured in, reports the Confederation of Indian Industry (CII).

With the surging demand for investment in real estate from domestic and overseas investors, real estate investment trusts when operational in India would enable a larger number of players to participate in investment grade buildings. These are currently worth USD 83 billion in India.

Currently, Indian REITs are entering the Singapore market. Ascendas India, the Business Park developer has already applied to the Monetary Authority of Singapore to raise USD 357 million to invest in integrated real estate projects in India.

DLF and Unitech are also deliberating on this option. While Unitech is going in for an overseas listing, DLF Assets has kept its options open for an Indian listing if the trusts are allowed to operate in the next 12 months.

As an investment, NRIs can consider UTI’s latest product, the India Lifestyle Fund. This is a 3-year close-ended equity oriented fund which will select equity of companies that are expected to grow from India’s consumer and lifestyle boom.

Launched on the 2nd of July, and on till the 25th of July, the fund will not have an entry or exit load, but an early exit is subject to a charge equal to the unamortized fund.

The Lifestyle Fund is open to non-resident Indians (NRIs), who can apply for a minimum of 500 units priced at Rs.10 each. The scheme will become an open-ended one after the three-year lock-in period. The scheme provides for redemption of units during the 5 day Specified Redemption Period at regular half-yearly intervals at the prevailing NAV price.

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