Russian Investors Eyeing Bangalore Realty Projects

Bangalore: Russian investors are showing their interest in Bangalore real estate market. At a recent World Congress Meet of FIABCI at St Petersburg investors like industrialists, property developers and high net worth individuals (HNIs) appreciated the city’s flourishing real estate market and expressed their interest to invest in Bangalore’s realty sector. In this FIABCI meet, more than 800 delegates attended including developers and investors discussed about city’s potential in the field of infrastructure, integrated township segments, retail and hospitality which generated huge interest among investors.

Farook Mahmood, Vice President – World Council, FIABCI, stated that “A group of investors from a few European countries are visiting Bangalore later this month to evaluate properties here. They are keenly interested in investments in commercial spaces, integrated developments and in the hospitality sector,” reports Magicbricks.

The investors are likely to take FDI route to enter in the domestic market. On this context, Mahmood explains that “India has a tax treaty with Cyprus and the Russian investors don’t need to pay tax twice if they use this route. Many Russian developers and investors have invested large amounts of money in Cyprus. These companies are also registered in Cyprus and get a tax holiday. This is a huge advantage for the Russian real estate companies that work well for us too.”

Soon after the meeting held at the Russian parliament house, Minister of Energy, Ivan Grachev expressed clear interest for Bangalore’s real estate and IT sectors. “The minister enquired about the housing situation in Bangalore and how joint development projects in the residential segment work. He also evinced interest in the public-private partnership model in the development of social housing”, says Mahmood.

The purpose of FIABCI meeting is to promote investment opportunities in member countries.  This meet has brought together investors and developers under one single roof to discover new outlooks. According to Mahmood, “Russian investors have been pumping in millions of dollars in the property markets of Dubai, Paris and New York. This meet helped push the city’s realty market. They were happy to note that property in India, especially Bangalore, yields over nine percent in rentals, and grows by over 20 percent annually,” reports Magicbricks.

The city’s construction industry will benefit in a big way if investments from Russia starts pouring.  Moreover, the local realtors will also benefit by citing their projects as a referral model to enlarge their business to foreign markets. Also, property investors across the country will get more opportunity to invest their funds in the city.