With land getting more and more scarce in Tier I and Tier II cities, international real estate funds, jointly with domestic property developers and real estate companies, are setting up high rise buildings in these cities.

Philippines-based Ayala, an international real estate fund, is looking at entering the Indian real estate market by tying up with property majors in order to develop high rise buildings in Tier I and II cities. This includes cities such as Mumbai, Delhi, Kolkata and Bangalore. Besides this, the US-based Forestcity too is planning to enter the Indian market for developing high rise apartments.

Kolkata-based Simplex Infrastructures Ltd is planning to partner with a US-based real estate developer to build 80 high rise buildings in Mumbai, Delhi, Kolkata and Bangalore. Amitabh Mundhra, director, Simplex Infrastructures Ltd, told FE, ?We are soon partnering with a US-based real estate company for setting up high rise buildings in Tier I and II cities by providing them with our design and expertise. We will soon rope in international consultants to provide world-class design mechanism to the US-based real estate company.?

According to Bajrang Bararia, senior manager, Jones Lang LaSalle Meghraj, ?Municipal authorities in Bangalore are looking at increasing the floor space index (FSI) in the city from 1.5 to 2.5/3. This will naturally attract property developers for developing high rise apartments as they can avail of the extra FSI. In comparison, the FSI in Mumbai is 1/1.5.?

Currently, major Indian developers such as K Raheja Universal, Parsavnath, Hiranandani Construction, DLF and Omaxe are talking to international biggies such as the Dubai-based Evolvence Capital Fund, Signature Group and Emaar Group, and Indonesia-based Salim Group in order to set up high rise buildings in sync with the trend in the global market.

According to Niranjan Hiranandani, managing director, Hiranandani Construction, ?This is to get the expertise from the global market and thereby increase business for developing high rise buildings in India.?

Meanwhile, in Tier III cities, where land is available in abundance, local developers are strongly focusing on constructing bungalows on plots of 25 acres and 50 acres.

?The demand for bungalows is high because of the tendency of people residing in cities such as Bhopal, Indore, Nagpur, Bhubaneshwar and Kochi to buy bungalows at affordable prices,? Bararia added.