Chinese developers are fierce and determined about expanding their horizons and establishing their presence in all the leading real estate markets across the world. And now they have trained their sights on India as their next big market for commercial and residential real estate development. Chinese developers are on the lookout for investment opportunities in India and are awaiting news about potential deals for development of large scale residential projects and townships.
As of this year alone, China’s investment in foreign markets has risen by approximately 50% with London, New York and Sydney being the prime destinations. With over $15.6 billion dollar investments in foreign real estate, they aim to go bigger and better with the Indian markets.
Chinese developers see great potential in the Indian real estate market. It is their expectation that real estate in India is all set to see massive growth in the next ten years just as China witnessed in the last decade. The Dalian Wanda Group, one of China’s prominent developers has announced that they intend to invest $10 billion in India in its first phase over the next ten years. These investments will focus on the construction of multiple industrial townships and other retails properties.
One of the primary reasons for the influx of these investments is the potential for growth displayed by the Indian real estate sector. Developers are convinced that the Indian market is all set to zoom up to great heights in the years to come and may become a leader in the global real estate market. Besides the larger names who are investing big bucks, the smaller developers within China too are urging their partners to look for investment opportunities in India.
Experts at the international consultancy firm JLL believe that India could see an inflow of investments amounting to $3-4 billion in the next 3 years alone.
One of the other factors that could be a large contributor to the new interest shown by the Chinese developers is PM Narendra Modi’s recent visit to their country. The prime minister has proposed for Chinese investments in the Indian market with the hope to fill up the widening trade gaps. If the media is to be believed, there is news that deals worth $22 billion have been signed with Chinese developers during Modi’s visit to China alone.
And now with the relaxed norms for foreign direct investments in real estate, India has opened up more to the interest of international developers. With India’s real estate and infrastructural sector in need of funds, this news about China’s interest could be the spark it needs to burn bright once again.
And with China, it is clear that the investments will be large scale. Chinese developers are expecting to build big projects in the country and are expecting substantial return on investments as well. Scale will be crucial with these new projects and Mumbai, Delhi and Kolkata may be the first few cities to witness the developments.
With Chinese investments flowing in, it could only be a matter of time before India’s real estate market marks its place in the global realty trends.