Vincent Lottefier, Chief Executive Officer of the India operations of Jones Lang LaSalle Meghraj, comments on the possible impact of RBI's mid-term monetary policy on foreign investment in India's real estate sector
The RBI seems to have observed that booming sectors such as real estate have benefited appreciably from the inflow of FDI funds, while nascent sectors have drawn the short end of the stick.
Tweet-- RBI seems to have observed that booming sectors like real estate have benefited appreciably from the inflow of FDI funds, while nascent sectors have drawn the short end of the stick. Additionally, RBI seems to be of the opinion that its previous measures to curb an oversupply of funds in various sectors have not yielded sufficient results.
One of the sectors that the RBI has found as under-benefited is infrastructure. Should policy changes to boost this sector be implemented, townships – which entail an equal balance of infrastructure and real estate – will doubtlessly benefit. Sectors such as commercial/retail real estate that do not put an emphasis on infrastructure development would not derive a comparable advantage.
It is conceivable that RBI will introduce provisions in the mid-term monetary policy that will offset the reduced benefit of FDI to Indian players caused by the appreciation of the rupee. If it does, we will hear a sigh of relief across all business sectors – including real estate.
Notes to Editor
Jones Lang LaSalle Meghraj (formerly Trammell Crow Meghraj) is the pre-eminent and largest real estate services provider in India. The firm services international investors,rncorporates and local clients who are growing rapidly, both in India and globally.
Jones Lang LaSalle Meghraj provides a strong and deep pool of management expertise with a staff of over 2800, and the largest geographic footprint across India with offices in ten cities. This gives the firm a matchless competitive edge. The company expects to exceed USD 100 million in revenue in the next two years. It represents a robust platform of service delivery, coverage and depth for clients. Jones Lang LaSalle Meghraj specializes in providing real estate advice to corporates and institutions who have either recently arrived in the country or already have an established presence.