FDI investments and its contribution to growth of commercial markets in India

Veröffentlicht von: Helen Tan
Veröffentlicht am: 11.11.2017 08:43
Rubrik: Handel & Wirtschaft


(Presseportal openBroadcast) - FDI in real estate is perceived to be an underdog. There is so much more to be done. We deliberately begin on a positive note, hinting about the big potential of FDI in the realty sector led by private equity investors and the NRIs, who mean business. However, given the general entrepreneur scenario growth in India backed by big-pocket nominees from abroad, it is now evident that the real estate sector needs more action on foreign investor note.

The fact that FDI investment means a large inflow of funds crucial for the sectoral growth in India makes it even a closer lookout option, since the current trends of real estate development in India don’t seem to cut a positive picture. We know, how structural reforms, both economic and sector-wise have dampened the spirit of the buyers and the developers for the time-being.

However, today we will consider buying from the perspective of end-cosumers and their purchasing capacity because they are the ones who will entice the FDI players to invest in the commercial market space or retail space locally.

So, taking our consumer perspective forward, demonetisation must have created a different spending pattern, but it has definitely not dampened the spirit of the consumer to not spend at all. We can still spot people in the plush malls, or shopping complexes, in short, retail, leisure and recreational amenities are still under continuous use. Moreover, this trend is going wider and deeper to create new tier 2 and tier 3 shopping formats. It is really the small cities and towns which are gaining further traction and interests from the project developers and the consumers, both, and inviting interest from the NRIs with financial muscle.

Other trends like e-commerce logistical growth or even the culture of creating co-working spaces may indirectly affect the NRI investor interest in the commercial reality landscape. Take, for example, the e-commerce sector reaches in tier 2 and tier 3 cities. It is quite convincing for the NRI and the angel investors to keep a close watch on the trending consumption patterns or growth in employability index, the clear offshoots of e-commerce establishment. One, people are introduced to new brands, two, there is infrastructural development and third, new jobs are created. Logistics or warehouse setups should be considered as an integrated part of commercial real estate development in India.

Not only the small cities but even the metro cities of India have a lot to gain from positive FDI sentiment. There is more money, better concepts of creating new market spaces like evolving a neighbourhood mall concept in the outskirts, where the maximum housing growth is happening now. There is always an improved scope of knowledge and technological exchange. It has a huge potential to change the basic commercial landscape of India, attached to space and optimum utilisation of the space, therefore.

The other positives include increased competition levels, better pricing, and quality of delivery, transparency and perfect timing to accommodate further in the commercial reality landscape of India. All this action can happen only in a congenial real estate environment. Thus, the recent slew of measures like demonetisation, RERA and GST has created a favourable outlook for FDI in India.

The scope of funds pouring in from NRIs and Persons of Indian Origin is important to create new avenues of growth for commercial sector holistically. With inflation under control and India on-track post demonetisation, in context of regaining customer confidence and infrastructural development expected to happen, it appears positive and regulated now. With 100% FDI under automatic route, it can only get bigger from here. More details visit https://www.realtymyths.com/fdi-investments-contribution-growth-commercial-markets-india/

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