Global investors still interested in Indian realty

The current global scenario might be one of gloom, with markets in the US and in Europe on the brink of a double dip recession, but interest in Indian real estate is still high among global investors, said Carlo Barel di Sant’ Albano, Chairman of the board of global property advisory firm Cushman & Wakefield.

“If a private equity player with a good track record comes up with a project in India, he will still find capital,” he says. Of course, the time taken to raise money has increased, as many international investors are averse to investing at the moment. “But it is clear from all the investors we speak to that they are trying to figure out how to put money in this part of the world, even today,” he adds.

Today Asia is a very critical part of any corporate or investors’ strategic plan. For Albano, India is at the centre of that strategy, alongside China because of its size and growth prospects. “If you look at the growth prospects in other parts of the globe, given what is happening in the US and in Europe, Asia is clearly an important driver for growth in the future,” says Albano.

Over the next few years, investor confidence in India is expected to improve, as transparency and regulation improve. “This will push more capital into real estate,” he says. In India, foreign direct investment in real estate already ranks fourth among other sectors, which is a fairly high position considering the regulations that exist for FDI in real estate. When one talks about investments, a comparison between India and China is inevitable.

Albano points out that China is ahead in terms of investment in infrastructure and India has some catching up to do in terms of infrastructure. “This scale in different cities in China provides extra flexibility and a bigger canvas for investors.” India, on the other hand, is ahead in terms of availability of human capital.