Against Current opportunities, foreign developers and investors must also consider the risks in entering the Indian market.

Among the risks:

• India's real estate capital market is not as mature and sophisticated as in some other countries.
• Real estate markets are not as transparent as international practices require. For example, titles to land are not clear in many cases.
  
• Leases are short, typically as little as three years, which can expose investors to frequent tenant turnover.
  
• Loans for acquiring or developing properties are made for relatively short terms, and the amortization period runs parallel with the loan term. As a result, much of a property's cash flow goes to debt service, and owners look to appreciation in the value of their properties at the end of the investment period to meet their return expectations.
  
• Tax policies are subject to unexpected changes. Taxes can be heavy, such as the transfer tax on sales of real estate, which varies from state to state depending on the value of the property.
  Further, the tax environment is highly litigious.
  
• Governance is not sophisticated.
  
• The quality of building standards are not uniform across the country and are not as stringent as in other more developed countries.