Commercial real estate has witnessed an exponential rise in India despite the slow return to normal (after the pandemic) in the global market. Thanks to its rapid urbanisation and expanding economy, India’s commercial real estate serves as an attractive avenue for Foreign Direct Investments (FDI).
Taking the example of a real estate company in Delhi NCR, FDI would create a lucrative opportunity for it to expand its offerings across the region – from commercial office space for rent in Noida to retail property in Gurugram.
While foreign investments benefit various sectors of Indian businesses and services, let’s examine how FDI in commercial real estate is impacting its growth.
Increased Capital Inflow
As government schemes and policies have made FDI easier in India, the real estate sector is witnessing an increase in capital influx by foreign entities. In particular, with the government allowing 100% FDI in the construction sector through automatic route, global investors are getting encouraged to put their capital in Indian real estate. This has resulted in a boost in commercial real estate through development of commercial complexes, retail spaces, hotels, and offices.
For a real estate company in Delhi NCR, the addition of FDI opens up opportunities to develop larger projects like premium commercial office space for rent in Noida and other such hubs.
Enhanced Infrastructure and Urbanisation
As real estate companies acquire more foreign investment, their operating region’s infrastructure gets an upgrade too. Due to FDIs, India has seen a rapid development of commercial office complexes in Tier-1 sectors like Delhi NCR, Mumbai, and Bengaluru.
For global companies that are setting up their offices in India’s major cities, modern Grade-A office spaces are being developed to cater to their needs. For a real estate company in Delhi NCR, foreign investments help enhance the quality of office buildings which in turn improves the region’s infrastructure. These days, commercial office space for rent in Noida is being designed not only for top-notch functionality but also to keep in mind enhanced overall infrastructure.
Foreign investment allows for greater development of commercial spaces that cater to various segments from tech companies to retail outlets. Furthermore, urban development also increases job creation and further investment.
Job Creation and Economic Growth
Projects backed by FDI are usually larger in scale, which results in a large-scale construction of commercial complexes, business parks, and logistics hubs. These FDI-backed projects create an increase in direct as well as indirect jobs, like construction workers, management firms, architects, and engineers. Even after construction is complete, these projects continue to create employment in the operational phase for security, retail services, maintenance, etc.
While employment increases, large mixed-use commercial hubs developed through FDI also attract people who purchase various goods and services, contributing to economic gain in the area. On a larger level, this spending increases the country’s GDP, making FDI in commercial real estate a great driver of economic growth.
In conclusion, while FDIs have been contributing to various industries and segments of the country’s economy, such investments are making a significant contribution towards the growth of commercial real estate in India. As a result, for a real estate company in Delhi NCR, a strategically planned FDI can be the difference between building a regular office space and creating a Grade-A premium commercial office space for rent in Noida.
