Jones Lang LaSalle, global real estate consultancy firm, reported that foreign investors will invest nearly $4-5 billion in the Indian realty market. JLL added that Bangalore, Delhi and Mumbai remain the favorites of foreign investors.
According to the real estate consultants Jones Lang LaSalle foreign investors are planning to invest around $4-5 billion in the Realty market of India. While speaking in an interview, Mr. Alastair Hughes, CEO at JLL Asia Pacific, said that the foreign investors are keen now to interest in realty market of India.
He added that Indian realty market offers better returns to the investors. He was visiting India to participate in the World Economic Forum Annual Meeting. According to him the foreign investors will invest mainly in Bangalore, Delhi and Mumbai as these cities assure higher returns to the investors.
Foreign investors had first tried their luck in the Indian realty market in between 2006 to 2008. Remaining unsuccessful, they exited from the country in 2009. According to Mr. Hughes they remained unsuccessful as they lacked experience in doing business in India. He added that the global economic crises also had a toll in their failure.
Foreign investors are now planning to come back to the Subcontinent with their investment schemes. They are seeking some good partners right now for entering into the Indian realty. Mr. Hughes opined that real estate business in India is very difficult to handle.
With the news of foreign investors aiming at Indian realty market, the builders are also seeking foreign investors. According to Mr. Hughes the amount is more now than the amount which was invested some five years back.
During the period, from 2006 to 2012, around $14 billion has been invested into the Indian realty market. Counting the last two years, $ 1.2 billion is invested per year. While nearly half of the total investment is in the housing segment, one fourth of the investment is in the commercial sector. All the other sectors hold the remaining 25% of the total foreign investment.
Mr. Hughes revealed that most of the investment comes from United States of America. However, he added that there is a substantial investment from other countries such as Germany, Hong Kong, Middle East, Singapore and the UK. He added that Bangalore, Delhi and Mumbai remain their favorite investment destinations.