India's bewildered real estate industry needs more than hope. Whether you are; a small developer in Jaipur/ Thrissur, or a big builder with a variety of asset classes, you are looking for something, rather anything to make 2015 better and perhaps, easier.
It is absolutely natural on your part to keenly follow American President Barack Obama's India visit that ends today. Why? Because we are looking for the slightest ray of hope. Because an association with USA is in itself a big thing, no matter how you want to
downplay it by saying 'Hey, USA is just one of India's many partners in growth.'
|Here are two global leaders addressing a business leaders' meet. What happens next will blow your mind! (Grrr)|
What then, as a real estate dude, should you make of this epic American visit to India? Will new found deals create a growth in office space demand? Will employment improve? Will more homes sell? Will more people buy from the stores at our mega malls?
India is a diverse land and we thought it would be best to have two versions of the answer to that question. Here they are;
#1 Obama's India Visit (2015) and Real Estate: For those who want to sound cool at Board Rooms and Parties.
You: Hey guys, did you check out the chemistry between Obama and Modi? It was something else. This is dawn for India guys. And what is dawn without a new day for real estate?
Friend 1: Yeah?
Friend 2: Repeat. *whispers to waiter* 30
You: Buddies, lemme recap the earth shattering things promised at both ends during the business leaders' meet held in New Delhi.
Indian Prime Minister Modi;
- There should be consistency in policies of the government
- First target should be to raise the purchasing power of Indians
- I want to focus on skill, scale and speed
- Big projects will be monitored by the PM's office. I take responsibility
- Business environment will not only be open but also welcome
- Our target is to bring India into top 50 of ease of doing business nations
- Business sentiment is strongest in India among Asian countries
- Investments from US has jumped 50 per cent in 6 months of my government
- The opportunities India offers is huge
- India's progress is a destiny of 1.2 billion people. Its success will be a great outcome for the world Indians are powering US businesses
- Indian IT companies building skilled jobs in the US
- Economic resurgence in both the countries gives us big hope
American President Obama:
- The aim of my visit is also stronger economic cooperation
- Greater economic cooperation is a win-win for both
- There is a lot of untapped potential of India-US economic ties
- India makes for just 2 per cent of US imports and 1 per cent of US exports
- There is a lot of scope for more investments between the two countries
- Exim Bank of US to commit $1 billion for project financing
- US Trade and Investment Development Agency to provide $2 billion for renewable energy projects
- US will help India build its infrastructure
- The fortunes of Indian and US economies are inextricably linked at the global level
- India to set up government committee for fast-tracking American investments
- I am excited that not only is the US investing in India but a lot of Indians are investing in the US
- PM Modi and I are interested in smart regulations
- Incredible business talent exists in India
- There is a natural convergence between the 2 countries
- The Indian diaspora has created incredible companies, values all over the world
How cool is that, guys?
Friend 1: Can't see anything tangible in 2015 for anyone I know, let alone real estate. Moreover, I don't know about such global leaders getting together but I have accompanied my firm's CEO to numerous meetings with other CEOs and they read out a similar script. The employees feel darn kicked about it for months but the CEOs themselves never see each other again. Essentially, nothing happens on the ground. But maybe this time is different. You never know man. :)
Friend 2: Repeat. *whispers to waiter* 90
Friend 3: OMG! You're so on top of everything. I just love men-on-top ;)
#2 Obama's India Visit (2015): For those who don't get invites to Board Rooms and Parties.
Okay, so here is the deal for you guys. Cutting through all the sugar coating, few critical points emerge.
Indian Prime Minister Modi:
- India is a huge economy with no purchasing power right now. So you should send money to India to build mega everything, put cold cash in the hands of our people and then they can buy more stuff from the USA. Sign that check.
- We are not dependent on the USA alone. We have friends in Russia and no matter how much we loathe them, never forget that at the end of the day, "Hindi - Chini bhai-bhai". So don't look for monopolies here.
- Our engineering and business schools are producing more graduates today than we will need in 2100 so ease up that VISA thing. Our people are good and they will do USA good.
American President Obama:
- Stop copy pasting. And please respect intellectual property rights. Your ethics are rogering up some very hard working and committed people back in the States. (Makes perfect sense. A great business environment as PM Modi promises must start with respecting each others' businesses.)
- Let American companies set up nuclear power plants in India.
- Fix your smoke belching and environment killing factories, homes and vehicles. We tried explaining it to the others but it is taking time on morse code.
- Better strategic implementation of a bilateral multi-dimensional
interstellar joint Indo- US defence system. In simpler English, buy more guns, ammo, missiles and air crafts from us. We would like to sell you ships too but we want to spare the Indian ship building industry any further pain.
- Real Estate? Of course we need a couple of new embassies and offices to be set up. 10k Sq ft in all. Yes. 2017.
Get it? Long term? Maybe. But outside the jurisdiction of that headline. Instant relief. 2015. Remember?