Chinese Developers Harp On Timely Delivery, See India As A Potential Market

Countries across the globe understand the potential of India as a real estate market. As a result of this, real estate developers of the world are planning to try their luck in this potential market. Even developers in China are impacted. Developers of that county might be looking at getting in through the private equity mode or by co-developing with Indian partners.

Chinese developers are known for their project management skills which they claim can help Indian developers achieve their goal of the Housing For All mission within record time. Chinese developers have the right set of skills to impress us. Guangdong-based home builder Country Garden, therefore, flew Indian builders to showcase their property management skills and claim to have sold three million homes. 

In 2016, Chinese real estate developers China Fortune Land Development Co. Ltd (CFLD) and Country Garden were building teams in Mumbai and Gurgaon to form local partnerships to enter the Indian real estate market as per reports.

Another Chinese name, Dalian Wanda would be investing $10 billion in India in construction of industrial parks, residential developments and shopping malls over the decade.  An MoU has already been signed for a project that will be spread over 1,300 hectares. The first phase may take five years starting 2016.

Meanwhile, CNTC, a Chinese conglomerate, has formed a $300 million joint venture with a real estate firm in Bangalore to invest across residential development in the country. The focus would be to develop projects across commercial, residential and mixed-use development.

These are just a few names. The Chinese have teamed up with India quite soon. Estimates show that while there were close to 30-40 firms in 2010, by 2017, the number of interested firms is high as 400 across various sectors such as solar energy, pharma, tech startups, electrical equipment, etc.

The future

A leading consultancy has said that by 2018, more than 30 per cent of the total global real estate transactions would be the cross-border ones. And, why not? Going by the statistics, the Japanese, too, are keen on putting their money into the Indian market. With a focus on industrial projects, industry experts believe that investments to the tune of $2 billion could be on the way solely by the Japanese.

Why does India spring up as a suitable market?

The rising middle class, low interest rates, regulatory reforms within real estate and a projected GDP growth rate have struck the right cord with foreign investors. In fact, most analysts see India as a market with opportunities, something that these foreign countries had about two decades back.