The real estate sector is throwing up many new opportunities, and is currently a sector of my personal focus. Marc Faber talks about a type of real estate firms that is present in Thailand and Malaysia. They are called Industrial Land Development companies. They buy big chunks of land, put in water and electricity, and build factories. These real estate firms rent or sell a factory and provide the whole infrastructure for a management fees. Marc Faber will be interested in looking for such kind of firms from Investment perspective in India.

In India SEZ firms will fall in such categories. All SEZ development firms will have a high capital growth potential, because land for such projects are acquired for a pittance, and after minimal investments in water, electricity, and access, the land value is multiplied many times over the investment made. Real estate is one sector that does not face scalability problems, especially in over-populated countries like India. Scalability is a big issue for companies like Microsoft. You can't sell more MS Office products if you already have every user using office. Given capital intensive nature of real estate, if you have funds, you can buy/develop more land and grow even bigger. If the market is down, just let the land lie for 10 years, and it will appreciate in capital. All urban infrastructure is in deep shambles today, and all real estate infrastructure firms that could build processes ensuring quality have huge growth potential.