Chinese property developers should avoid a “blind rush” in investing in India as acquiring land there is far more difficult than in the Communist country, a media report has cautioned. According to the report, India may not be a “promised land” for Chinese property developers seeking new frontiers beyond their homeland. “Chinese developers should avoid a blind rush into the Indian market where the rules of play are vastly different,” the report in the state-run Global Times said. The report came in the wake of a write-up in London-based Financial Times on how India had emerged as the next big market for property developers.
“While bidding for land in China for property development normally entails substantial efforts, the complexity of acquiring land in India is even greater, given the country’s land control regulations,” the article added. “Other than building properties in developed markets that typically appeal to the wealthy Chinese people, domestic developers including Dalian Wanda have shown an interest in housing projects in India,” the article said. Wanda has evinced interest to invest USD 10 billion in a huge housing project in Haryana, which is yet to materialise.
“In fairness, the fast-growing Indian economy and a burgeoning middle-class have made the country increasingly alluring as an investment destination for Chinese businesses,” the article said. “Chinese vendors took up more than half of India’s smartphone market in terms of shipments in the first quarter of the year, a promising sign perhaps that Chinese brands are popular in India. But Chinese businesses, property developers in particular, should not see this as the start of a race to invest in the Indian market,” it added.