Government reforms in India are lead to more international investments to the country's property investors. And Narendra Modi is to thank for all the progress. The Mumbai-based realty firm Piramal Realty, explained that U.S. investment bank Goldman Sachs had committed to invest to a minority stake in the firm at US$150 million.
Goldman Sachs is the second foreign company that Piramal Realty encouraged to invest over the past forty two days. In the previous month, Warburg Pincus invested $285 million for a minority share.
The National reported that the least capital investment level for any property project has fallen from $10 million to $5 million, and the least floor area decreased to 20,000 square meters from last year's 50,000 square meters.
"We have quite a strong Middle Eastern connection," said Anand Piramal. Mr. Piramal is an executive director of the Piramal Group of Companies, who was cooperating with some ex-workers of Emaar Properties and Limitless, a large scale real estate developer in Dubai. He also added, "Some are working full time and some as consultants, but they are all helping us to build a great real estate company in Mumbai."
The property sector of Mumbai is going through a roller coaster ride currently, with new updates beginning to fall around 40 percent and profits dropping at 20 percent because of the supply issue.
According to WSJ, Mr. Piramal explained that he and his shareholders were happy to say that the forecast of the Indian market is good. "I think the [property] cycle has bottomed out in India, and now with a new government in place - [a] government that is pro-business, progressive and wants to simplify regulation - they think it's a good time to buy land parcels when times are still a little bit bad," Piramal said.
At the same time, the $250 million real estate fund for GCC investors will be invested to 11 cities in India in five years. The fund came from Arthveda Fund Management.
