Japan to commit $2 billion in industrial, residential projects.
By Dileep Thekkethil
It seems like 100% FDI allowed in the real estate development sector in India has caught the fancy of Japanese and Chinese investors.
Real estate services firm Jones Lang LaSalle (JLL) reported that Japanese investors will make investments worth $2 billion in the next three years in industrial and residential projects. The Indian property market is becoming a major investment ground for Chinese and Japanese developers, said JLL.
Earlier, Wanda, the biggest Chinese developer signed a MoU with Haryana government and more developers and private equity investors from China and Japan are expected to make a foray into the Indian realty market soon.
“Japanese developers are keen to explore strategic partnerships and enter into joint ventures with Indian builders, and are particularly interested in industrial projects. There is likely to be an inflow of at least $2 billion in investments from Japan into the Indian real estate market over the next three years,†JLL India Chairman and Country Head Anuj Puri said.
He also added that the sudden surge in the number of big investment projects by foreign developers is the result of the government announcement of 100% FDI investment allowed in real estate industry.
“One of China’s most prominent developers, Dalian Wanda Group, signed a memorandum of understanding (MoU) earlier this year with Haryana to develop ‘Wanda Industrial New City’.
The investment of $10 billion, phased out over the next decade, is a very significant outlay by any Chinese company in India,†Puri said.
He added that there is a long queue of Chinese companies interested in entering India.
The survey conducted by RICS-JLL in January this year had found that 62% of the respondents felt that developers and private equity firms from Japan and China are waiting in queues to enter the Indian real estate market in 2016.