Real Estate

REAL ESTATE

The real estate sector in India is the second largest employer after agriculture and is projected to grow at 30 percent over the next decade. The real estate sector is comprised of four major sub sectors – housing, retail, hospitality and commercial. The growth of this real estate sector is well complemented by the growth of the corporate sector and the demand for office space, as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct and indirect effects in all sectors of the economy, and is similarly expected to experience rapid growth rates. It is also expected that both these sectors will experience more non-resident Indian (NRI) investments in both the short and the long term.

 

Some Interesting Facts:

  • According to IBEF (India Brand Equity Foundation), the Indian real estate market is expected to reach US$ 180 billion by 2020.
  • The housing sector alone contributes 5-6 per cent to the country’s Gross Domestic Product (GDP).
  • The private equity investments in real estate increased 26 per cent to a nine-year high of nearly US$ 6.01 billion in 2016, according to IBEF.
  • The real estate sector in India is expected to attract investments worth US$ 10 billion by 2020, as per the World Investment Report 2016, published by the United Nations Conference for Trade and Development.
  • India’s Tier-I cities ranked 36 in JLL’s 2016 bi-annual Global Real Estate Transparency Index.
  • The Modi government’s vision of creating 100 smart cities will require an investment of over $150 billion over the next few years, with the private sector being a significant contributor.[1]

 

India Global Advisors partners with you in not only helping you to recognize these opportunities before they arise, but also in timely seizing these opportunities by using our research and partnership network, including cutting-edge professional expertise (including professionals trained in the United States and India), in real estate, finance, construction, brokerage, asset management and law.

 

Cross Border Real Estate Challenges

  • Restrictions of foreign owners acquiring local property or company interests in India
  • Foreign Direct Investment (FDI) Restrictions and Rules in India
  • Strategic Market Assessment / Lack of Local Market Intelligence / Transparecny
  • Cross-Cultural Deal-Making Custom and Practice in the U.S. v. India, Including Negotiation Protocols and “Do’s” and “Don’t’s”
  • Finding, Properly Vetting and Entering into Local Partner, Joint Venture or Other Business Alliance Arrangements
  • Finding India / U.S. Trustworthy Broker Networks and Teams, Minimizing Local Broker Bias
  • Governmental Approvals and Requirements (Including India Land Conversion Issues, Final Plot Issues)
  • Public-Private Partnerships, Opportunities and Structure
  • India / U.S. Real Estate Financing
  • India / U.S. Business Entity Formation, Licensing and Permitting
  • Due Diligence, Including Financial, Legal, Environmental, International
  • Local Legal Issues, Including Proper Title, Deal Structure and Documentation
  • International Tax Issues, Including Tax Efficient Deal Structuring, Withholding, Tax Treaty Planning & Benefits, Tax Deferral Strategies, Etc.

 

Our advisors partner with you to provide guidance during every aspect of a real estate investment, from the onset of your investment strategy, selection and management of broker networks, and potential joint venture and business partnerships, as well as cross-border transaction management services, with the underlying goal of building your wealth and helping strengthen your investment portfolio.

 

Services provided by India Global Advisors for the Real Estate Industry:

  • Phase I – Market Entry / Expansion:  After assessing client investment criterion and objectives, assist in evaluating local markets and opportunities, closely working with our local brokerage and real estate teams to determine prudent market entry or expansion strategies (including joint ventures with local investment partners), the viability of stand-alone or portfolio acquisitions, development or construction projects.  Also leveraging upon our local partner networks, at this stage we also assist in building your local real estate acquisition teams, including brokerage teams, financing, joint venture, operator, construction, legal, tax and other team players.
  • Phase II – Negotiations and Offer: Spearheading and working with the local team of advisors, we can help you interpret market trends and real time intelligence and data, necessary at the negotiation and offer stage of an investment.  We can also assist with property tours, offer submittals, negotiation of the purchase agreements, joint venture agreements, financing and other related agreements.
  • Phase III – Deal Structuring: Working with our local brokerage teams, as well as our international tax and legal advisors, we assist you in achieving optimal investment returns through strategic, tax-efficient structures.
  • Phase IV – Due Diligence and Closing: Working with the local team of advisors, during the “escrow” phase, we can help you with due diligence review, management of third party advisors and the closing of the underlying transaction.
  • Phase V – Post-Closing: As many cross-border deals involve local joint venture partners or property operators, post-closing issues such as joint venture partner performance obligations or transitional issues arise – our team of advisors can help mitigate these issues and come to effective resolutions.

 

Real Estate Success Stories:

 Indian Helps Blackstone Become World’s Largest Office Landlord:

Starwood Opens Second Sheraton Hotel in India:

 

Real Estate Resources:

  • Opportunities in Smart Cities – IGA White Paper coming soon
  • Opportunities in Housing – IGA White Paper coming soon
  • Opportunities in Infrastructure Projects – IGA White Paper coming soon

 

[1] Delotte- Global Exhibition on Services- The India Opportunity- April 2017

X