Foreign investors to focus on commercial realty

With the drop of home prices in many of the top cities, foreign investors now plan to invest in commercial properties in India.
Foreign investors plan to shift investment to commercial sector in India.

Foreign investors plan to shift investment to commercial sector in India.

Foreign investors are active in the country since 2005 the year in which they were permitted. However their main investment options remained residential market due to simpler investment norms. Moreover, once the home is finished, the housing sector offered them chances to exit easily with higher returns.

However with surging number of unsold homes in the country, the foreign investors plan to shift to commercial sector now. It is true that the residential market in India is not as vibrant as it was earlier. This would be a reason what prompts them to exit from the housing sector.

Foreign investors including Blackstone Group, now plans to the move on to the commercial sector for their investment, reported Reuters. The sluggish residential is shown as the reason for their shifted interest.

Though the foreign investors are keen to invest in India due to its fast-growing economy, they do not find investment in the residential project as suitable as it was. Home prices have fallen by 5 to 30% since 2009. This fall of home prices prompts foreign investors to look out for other options. Continue reading

Morgan Stanley Likely To Invest In Commercial Project

Morgan Stanley plans to invest in Bandra Kurla Complex, in Mumbai where the firm will develop around 1.6 million sq. ft. of office space. If this deal takes place this will be the first investment of Morgan Stanley in India in the commercial sector.
Morgan Stanley plans to invest in India

Morgan Stanley plans to invest in India

Morgan Stanley Real Estate Investing is pondering over the firm’s plans to develop 1.6 million sq. ft. of office space in Bandra Kurla Complex in Mumbai. Mumbai- based real estate firm, Wadhwa Group, initiated construction of the project under which two more commercial towers will be developed by the end of next year.

Though the deal is only in its initial stages now, it would be the first investment by Morgan Stanley investors in the commercial sector of India. Earlier the firm had invested $850 million in India for developing a real estate project. However the project was basically a housing project. And so it would be the first time the American firm will be investing in a commercial project. Continue reading