Further liberalization in FDI policies – 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route (against the previous 49%) – has attracted major global PE funds to double their investments in the Indian retail sector.
Entity-level investment is an efficient strategy to get a firmer foothold in the real estate market. It allows a private equity investment firm to not only deploy its capital but also gain synergetic skills in the real estate marketplace. PE firms invariably look for high levels of corporate governance in a real estate development company before deciding to invest in it at an entity level.
The Axis RERA Fund has invested in Akshaya’s ‘Orlando’, a unique township project. The upcoming project is located in Kelambakkam, on the Old Mahabalipuram Road (‘OMR’) – Chennai’s famed IT corridor, which is home to some of India’s biggest IT campuses.
The country’s housing market has also seen the highest impact of policy-induced disruptions. Given the fact that the housing market was tainted by malpractices and lack of customer-centricity by developers, the Government had to step in with policy interventions squarely aimed at cleaning up the sector.
Singapore investors are betting big on Indian commercial real estate and other new sunshine sectors, including logistics and warehousing. Major Singapore-based private equity firms are funnelling billions of dollars into the country’s real estate sector, particularly in South Indian cities.
Investors are scouting for investment-ready assets in core office locations in Mumbai, Delhi-NCR, Bengaluru and Hyderabad, which together accounted for about 77% of the total leasing in 2018. We foresee higher investor interest for Greenfield projects in southern cities, especially Bengaluru and Hyderabad, which are witnessing pent-up demand in key office corridors.
The greener pastures are mostly defined with numbers and not execution capabilities or business model. For example, the absorption of office space has been upwards of 40 million square feet per annum for the last 3 years. The overall sentiments in this segment look bullish with PE investors also putting in money. As a matter of fact, even in retail real estate the PE investors are bullish and exploring even the Tier II cities having malls with good footfalls, brand mix and strong sales. This is what is enticing the residential developers looking for both the buyers as well as the capital investments.
There is no restriction on the number of properties that NRIs can own in India. However, NRIs obviously need to make informed decisions on such acquisitions. The most important consideration is that of whether the property purchase is for their own or their family’s actual use, or as an investment for rental income and potential capital appreciation.
With criticism ranging from alleged corruption in the defence deals to slow moving economy, the government that came to the power with these two major planks of fighting corruption and accelerating the economic growth is under pressure. The government is, therefore, left with no option but to present a budget that gives a feel good factor.
Virtual Reality technology combined with their proficient contracting ability, Flipspaces comes as a one-stop partner for clients who want to design their commercial spaces through Interior Design and Contracting. Their target market includes offices, restaurants, educational and financial institutions, and hotels.