Land acquisition snafus, Retail FDI delays and the exit of Foreign Partner

DLF partner and Dubai World company limitless inc, left Indian shores yesterday, finally selling its 50 percent share in Bidadi knowledge City on the State Highway 17 between Bangalore and Mysore. The plans for the 9178 acre city with shopping vistas and residential co location for corporates looking to exit the congested Bangalore urban zone were shelved after HDK laid claim to most of the property and DLF could not get land acquisition underway thru Government or private effort. Business expansion in Bidadi and Bangalore has revived thence and Bangalore real estate is still offering a lot of value to incoming businesses as witnessed in MoUs signed in the Global Investor Meet. Bangalore still leads in new room capacity from the 50000 rooms to be added in India in the next 3 years with a couple of new 5 star properties planned apart from ITC and Nitesh ( the second is yet to open) Also price realisation in luxury hotels in Bangalore has also improved the most nationally though the resulting gaps in real estate inventory are taking a toll on the banks partnering real estate in the city.

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