While the real estate market in India is far from satisfactory, a section of real estate developers are exploring opportunities in neighboring nations including Sri Lanka and Bangladesh as the governments, seeking to boost economic growth, are providing incentives to develop infrastructure.
The property developers are taking up new projects outside India again after the global financial crisis that started in 2008 disrupted the projects that local developers announced in places such as Dubai, Bahrain and Malaysia.
“While many developers are evincing interest, they are looking at less capital-intensive projects, eyeing partnerships with local realty firms or strategic alliances with local governments, instead of investing heavily on land buys,” said Ashutosh Limaye, Associate Director, Strategic Consulting, Jones Lang LaSalle, a property advisory.
Bangalore-based developer Puravankara has reportedly renewed interest in Sri Lanka’s capital city of Colombo, after the nation’s civil war ended and the government invited real estate investments into the country.
Puravankara’s budget housing unit is scouting for suitable land parcels in the island nation. The company has also changed its plans for its proposed villa project with a mixed-development project on a 25-acre plot that will include commercial as well as residential buildings.
Tata Housing is also building a large housing project in Maldives in partnership with the government.
“The project is in the planning stage. Once it is built, Tata Housing will hand over a portion back to the government,” a person familiar with the development said, requesting anonymity.
Another Tata company, Tata Realty and Infrastructure Ltd, is expected to partner with Maharashtra Housing and Area Development Authority for building affordable homes in Sri Lanka.
“The project is awaiting a green signal from the Maharashtra government,” said a MHADA official requesting anonymity.
Officials of a real estate firm with projects in Kolkata visited Dhaka twice and are looking at housing projects there.
“We are keen to do housing projects there as there is big demand, but there are issues regarding getting clear land titles, which we are sorting out,” said a company official, adding that the negotiations are in early stages and it may or may not work out.
