Experts have been noticing a trend during the past couple of years. It seems that a lot of Japanese companies and investors are injecting large sums into India’s economy. They’ve put their eyes mainly on the real estate market of Asia’s third-largest country. You might be wondering why the situation is the way it is. If so, we’re here to elaborate on the subject a bit further. Stick around to find out why Japanese investors flock to India’s realty market.
India’s realty market 2021
The last year started very well for India’s real estate market. It was one of the world’s most desirable real estate markets. There was a great demand present out there, and predictions were even better. And then we all know what happened. The Covid19 pandemic struck hard, and there came a stagnation point. So, is 2021 going to serve as the backdrop of the country’s real estate market revival? Experts think so. And here’s why:
- Greater demand for affordable housing.
- Increased demand for large, secure homes.
- The so-called tier 2 and tier 3 cities are also to witness greater demand.
- Delayed projects continue.
How long will it take for the market to fully rejuvenate?
It’s not that easy to tell. According to real estate pros, the potential the market had in 2020 will come back in 2023. It’s no wonder many companies see this as an opportunity to invest in a market that’s currently stagnated. The prices are expected to go up significantly once the economy regains its former strength.
Can you buy property as a foreigner in India?
To put it simply: yes. But there’s a lot more to it. If you’re a citizen of Sri Lanka or Pakistan or other neighboring countries, you’ll need to obtain a permit from the Reserve Bank of India. As a foreigner, you need to spend at least 183 days residing in this beautiful country to gain the right to buy property.
Can foreign companies invest in India’s realty sector?
Experts note that India’s real estate sector is open for FDI (Foreign Direct Investment). But, there’s a catch. Foreign companies can construct new buildings and invest in growing cities, townships, etc. They cannot invest in finished buildings, though.
Japanese investments so far
This might be a quick digression since we’ll talk about something else rather than India’s real estate market. Between 2016 and 2021, the Japanese have invested about 9.2 billion dollars in India’s tech industry. Thus creating about 102.000 new jobs on the market. The numbers are only going to grow. According to experts, 361k new jobs are expected to turn up until 2023.
Finding work in India
It’s not just Japanese investors that flock to India. You might find it surprising, but many young professionals from all around the world are coming to India to find work in the growing tech industry. Great opportunities and a decently low cost of living seem attractive enough to start with. If you’re thinking of joining one of the fastest-growing tech industries in the world, the best way to handle the process is to hire reliable international movers. There’s no going around that one. Even the local moves are stressful. Can you imagine an international relocation in a DIY manner? Neither can we.
So, why are Japanese investors flocking to India’s realty market?
The answer is out there in plain sight. But, we must elaborate on it a bit.
Big returns expected
As we’ve already mentioned, the market still has to recover from the effects of the pandemic. There are big plans for the future appearing on an everyday basis. The numbers will only go up, and it’s better to buy a property now than regret missing out on a chance to gain profit later. It’s always better to buy properties when the economy comes to a halt. Of course, if one can afford it. It might take a while for the market to fully recover, but the rewards are worth the wait.
Which Japanese companies have set their eyes on India’s real estate?
We’ll only mention the biggest names. That’s about enough to form a picture of why Japanese investors flock to India’s realty market. Here are some big-game companies investing in India’s realty sector:
- Mitsubishi Corporation.
- Genkai Capital.
- Mitsui Fudosan.
- Sumitomo Corporation.
Currently, Japan is the third-largest investor when it comes to India.
Are they investing in commercial or residential real estate?
Most of these projects are centered around commercial real estate investments. It should come as no surprise, as we’ve seen earlier in the text, how much the Japanese invested in India’s tech industry. Also, a greater demand for more office space will appear once we see the end of the pandemic. Japanese investors have noticed an obvious potential there.
Final thoughts
These were some of the reasons why Japanese investors flock to India’s realty market. Let’s do a quick recap. India’s economy was on its way to stardom when the Covid19 pandemic struck hard, ruining most plans. Currently, the market is in the stagnation stage. Luckily, experts predict things will be back on track in 2023. That’s why many companies are looking to invest now in India’s realty sector. Japan is the third-largest investor in India. About 9.2 billion dollars have been pumped into the veins of India’s economy since 2016. The whole process created a lot of new workplaces. Last but not least, if you want to experience this soon-to-be booming economy first hand, hire professional movers and enjoy a smooth relocation to this Asian pearl.
