After the Chinese, Japanese now vying Indian realty via private equity

After the Chinese, Japanese now vying Indian realty via private equity

Subsequent to Centre’s nod to 100 per cent foreign direct investment (FDI) in the real estate industry, it was only a matter of time before foreign developers made big investment announcements.
According to a report by realty research & consultancy firm JLL India, developers and private equity investors from the Land of the Rising Sun are looking to enter Indian property market. The Japanese could invest at least USD 2 billion in residential as well as industrial projects over the next three years. “India is emerging as a major investment destination for Chinese and Japanese developers,” the report stated.
Private equity investors from these two countries are also looking at entering India’s real estate sector; China’s biggest developer Dalian Wanda Group has already signed an MoU with Haryana government earlier this year to develop Wanda Industrial New City with an investment of USD 10 billion, spread out over the next decade. More developers from China as well as Japan are expected to penetrate domestic real estate soon.
“Indian realty markets are likely to see an inflow of at least USD 2 billion in investments from Japan over the next three years as Japanese developers are keen to explore strategic partnerships by way of joint ventures with Indian builders; they are predominantly interested in industrial projects,” said Anuj Puri, Chairman and Country Head , JLL India.
62 per cent of the respondents of a RICS-JLL survey conducted in January this year felt that institutions from Japan and China could knock at the doors of the Indian real estate market in 2016.