~By Charmaine Mirza
Chinese investment in India’s real estate sector increased six-fold in 2015, topping out at approx. US$870 million. The door is still wide open. The Indian government’s decision to allow 100 percent Foreign Direct Investment into the real estate sector has lead to a spike in interest from Chinese investors.
Haryana has certainly jumped on the bandwagon. Dalian Wanda’s MoU with the Haryana State government to develop the Wanda Industrial New City that spreads over 100 kilometers, has flagged off a trickle of investment from China into India that could turn into a steady stream.
China Fortune Land Development is also sizing up large-scale industrial park projects in Haryana, while Gezhouba, another real estate player from the mainland, is eyeing an investment in Telengana. Not to be left far behind, Madhya Pradesh is also seeking Chinese help to develop large scale industrial projects, while in the private sector, financing major China Fosun International, is considering investing in Locon Solutions, the owner of housing finance start up, Housing.com.
So why is there such a sudden gold rush from China into India’s real estate segment?