Can Global Learnings Accelerate The Growth Of Luxury Real Estate In India
The United States Republican presidential candidate and a real estate tycoon, Donald Trump entered the Indian real estate market in 2014. He partnered with the Lodha Group to build Lodha The Park Trump Tower in Mumbai. Trump had earlier joined hands with Panchshil Realty to build the Panchshil Trump Towers in Pune. But, Donald Trump is not investing in these projects.
In 2010, Donald Trump had tried to enter the Indian market by partnering with Rahul Lifespaces. But, as the regulatory barriers were high, he couldn't. In 2012, however, Trump tied up with Panchshil Realty, and in 2014, with the Lodha Group.
Donald Trump thinks that India's real estate market is now ready for his luxury properties. Is the Indian real estate market really ready for foreign developers? It is worth noting that Donald Trump's role in these projects is limited to allowing Indian real estate developers to use his brand name and specifications for an undisclosed sum without any holding any equity in these properties. But, it is not clear why foreign developers are not free to invest in Indian properties. The Indian real estate market is considered to be not well-organised and transparent. When there is greater foreign investment, real estate developers would not have to turn to other sources to complete their projects.
But, this is not the only gain from the entry of foreign developers, architects and experts. The Delhi Metro, for instance, had to hire foreign consultants to make sure that metro stations are disabled-friendly. That is true of other Indian institutions or developers that try to build disabled-friendly buildings. Now, foreign capital and globalisation is often associated with money-grubber ethics. But, would differently abled people have structures that take their unique needs into account without foreign expertise and capital?
Similarly, when DLF wanted architect Hafeez Contractor to build office buildings in 1988, Indian architects were not really familiar with the concept of office buildings. So, DLF took the architect on a tour of office buildings in London, Dubai and other major cities of the world. DLF used to pay foreign experts for sharing their expertise. When they were building a convention centre, again, they had to seek the help of foreign experts. Indian developers are not allowed to hire foreign architects easily, though they can act as consultants. But, the fact is that much of human progress is about such learning that happens across the borders.