India’s focus on attracting global investment community, particularly by offering 100 percent foreign direct investment (FDI) in the real estate industry, is encouraging Chinese realty firms to look at India as a potential destination.
One of China’s most prominent developers recently signed a memorandum of understanding to develop an industrial township in India’s northern state of Haryana. The $10 billion investment, phased out over the next decade, is a landmark outlay by any Chinese company in India.
Another MoU signed between China Fortune Land Development Company Private Limited (CFLD) and Haryana will bring large format industrial parks to the state while Chinese construction company, Gezhouba, has in-principle agreed to invest Rs100 billion in irrigation projects in Telangana state.
Ashutosh Limaye, Head of Research, JLL India, said increased participation by foreign players is expected to help in the development of quality projects, which will benefit end-users and simultaneously create opportunities for Indian investors.
“Funds and realty players across the world are looking more confidently at investing in India,” says Shobhit Agarwal, Managing Director Capital Markets, JLL India.
“Chinese developers are keen to explore strategic partnerships and enter into joint ventures with Indian builders, and are particularly interested in large residential projects. There is likely to be an inflow of at least US$ 3-4 billion in investments from China into the Indian real estate market over the next three years,” he said.