Indian Realty And Infra To Bloom With Foreign Investment

Indian infrastructure has always been the talking point on the global forum. With rising population, crowded cities and limited jobs, the country has always offered huge opportunity for investors to leverage the growing economy of India. However, due to government policies and restrictions, the foreign investment remained very limited till now. But with changes in directives and the launch of Make in India program by PM Modi, there are many companies which are showing a keen interest in Indian infrastructure and economy, which will ultimately impact the real estate sector.

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From metro cities to its peripheries, world corporate giants are eyeing land parcels and commercial spaces for setting up their bases on the Indian soil. Very recently, Chinese firm China Fortune Land Development had sent a proposal to develop Rs 17,000 crore industrial townships in Sohna, near Gurgaon. According to the proposal, this township is expected to generate more than a lakh job opportunities. In another instance, ZTE and Dalian Wanda Group are also keen to invest in Haryana for industrial development.

Not just China, Japan has also shown interest in various infrastructure projects and has recently committed funds to the tune of $25 billion to Indian Railways. A specialised 500-acre Japanese township is under planning in Bengaluru. Apart from this, Bengaluru has been receiving a request from tech giants for commercial spaces and most of these are Fortune 500 companies. In fact, Chinese biggest e-commerce company Alibaba is also looking for space in Bengaluru to open its tech development centre. These companies are expected to generate jobs, ultimately impacting commercial and residential demand in various pockets of big cities. Not just the investors, those who intend to be stay-at-home landlord can earn big money while investing in a property now.

Also read: Bengaluru, Mumbai Asia's Top Investment Bets In 2017

While taking specific real estate investment into an angle, Fosun group of China is soon going to launch real estate-focused platform in India with an investment of USD 1 billion through equity transactions. Earlier, Hiranandani Group, Viviana Mall and The Xander Group are dealing with Canadian, Dutch and Singapore firms, selling either the equity or stakes to raise funds.

Not just the metro cities, Hyderabad has also managed to shine when it comes to foreign investment. While real estate developers are receiving foreign money from undisclosed global investors, the commercial market is also flooded with American and European multinational companies, scouting for office spaces.

As Bengaluru and Mumbai are the top two cities for investment in Asia Pacific in 2017, replacing Tokyo and Sydney from the list, according to the report published by Urban Land Institute, this is the biggest indicator of the fact that Indian cities and infrastructure sector is appealing to other foreign giants than any other destination across the world.

 Also read: India Needs More Foreign Investment In Infrastructure