It may now be a great time to invest in India, finally. Previously, there had been significant hurdles for foreign investors in India. However, according to Anuj Puri, Country Chairman and Head of JLL India, the election of a new government, the first in 30 years, bodes very well for foreign investing, particularly in commercial real estate.
With a great deal of excitement, Anuj tells me that, with an overwhelming public mandate, a new government was swept into power in India, headed by Narendra Modi, as Prime Minister. The new Prime Minister ran on a promise to end corruption and improve the economy.
Formerly the Chief Minister of the State of Gujarat from 2001 – 2014, Modi led Gujarat with strong agricultural policies and an emphasis on industrialization with very business and investment friendly policies. The hope is that he will continue the same policies for the whole of India.
Anuj believes that this change in the government will generate a great deal of interest from private equity and institutional funds, particularly in commercial real estate.
Here is a not so surprising fact: Blackstone is the 2nd largest developer in India with over 21 million square feet of office space in India.
Will REITs open up in India over the next 12 – 18 months?
Expect capital to start flowing in from China, the United States, the middle east, Singapore, etc.
Despite all of the excitement and high expectations, Anuj doesn’t think that Modi will be able to “waive a magic wand”. It will take some time and Anuj counsels patience.
This video was filmed in Las Vegas in May 2014 at the ICSC Annual Recon convention.