Roberts said that the government can improve the muchneeded transparency
by taking processes and approvals online
| ET Bureau |
With regulatory changes,
including easing of foreign
direct investment rules and
better execution capabilities,
Indian realty is being preferred
as an investment destination
by global investors.
investment community is
closely tracking the
performance of the sector and
the confidence they would
derive from this will bring in
robust inflows into this space,
said Stuart Roberts, CEO,
AsiaPacific, Cushman & Wakefield.
In an exclusive interaction with ET's Kailash Babar, Roberts said that the government
can improve the muchneeded transparency by taking processes and approvals online
and such initiatives will improve the Indian property sector's perception in the eyes of
What's your assessment of the overall investor sentiment and confidence
towards real estate as an asset class in India? The India investment market is buoyant, up 84 per cent yearonyear. However, by global standards, it remains small
at $2.8 billion.
Foreign investors are most active (over domestics) and are mainly
targeting Delhi and Mumbai.
In India, PM Modi's biggest contribution thus far has been getting the focus back on
development issues and instilling a fragile sense of optimism.
Some reforms have
taken place (the real estate proposals from this month are quite ground breaking), not
to mention that some more bigticket items are in the works.
Do global investors view the Indian property market as an investment
destination? India is definitely on the radar for many sovereign wealth funds and
pension funds and they are looking for stable returns from India.
Currently, they prefer
leased assets which are devoid of developmental risk, but eventually their initial
investment experience would give them confidence to underwrite semideveloped and
under construction projects.
The international investment community is closely watching the performance of current
investors and even these investors can write larger cheques in future once they find
success with initial investments.
So, India is a promising destination for investment in
real estate, especially for core assets.
Which are the international best practices that Indian real estate developers and
government authorities can adapt to? For improving the transparency levels,
government authorities can make data available online and I understand some state
governments are even talking about doing the entire approval process online and such
initiatives will improve the perception of Indian real estate developers in the eyes of
Focusing on execution is another area where the Indian real
estate sector as a whole can improve.
How can India's real estate market adapt to accommodate global, regional and
local economic dynamics? Housing for all is an idea of the current government and
to achieve that, the Indian real estate industry should adopt proper town planning
initiatives, where the government provides infrastructure and reasonable cost of land.
Lack of infrastructure is creating shortage of accessible land near economic centres
and without improving the infrastructure, India will not be able to create a large pool of
urban land which can cater to the housing shortage for the economically weaker
sections of the society.
What are the key strategies players are adopting to align themselves in the current economic scenario, particularly in India? There are two things that have
been dogging the Indian market.
First, is the transparency of the development
community, and the second being consistency in the product. However, developers
are increasingly working towards creating assets that meet global standards that are
investible by global financial companies
Source - http://realty.economictimes.indiatimes.com/news/industry/indias-a-promising-destination-for-real-estate-investment-cushman-wakefield/49942724