Davos: Niranjan Hiranandani, managing director of Hiranandani Group, addressed the World Economic Forum (WEF) meetings in Davos, discussing strategies to enhance the real estate sector in India. He emphasized the necessity for interest rate reductions and additional incentives.
In an interview with ANI, he underscored the importance of lowering interest rates to foster positive developments in the sector, while also advocating for increased incentives in the housing market.
"The Reserve Bank of India must consider reducing interest rates, as this is a crucial step. Additionally, we need to provide more incentives in the housing sector; otherwise, India's growth narrative may falter," he remarked, pointing out the decline in growth within the affordable housing segment.
Hiranandani expressed optimism about India's global perception, noting a growing enthusiasm for investment in the country.
He observed a shift in business strategies, with companies diversifying from China, leading to a rise in interest in India that transcends this trend.
"The global perception of India is very encouraging. There is a noticeable enthusiasm for investing in India. The narrative surrounding 'China plus one' has evolved, as interest in India stands on its own," he stated.
He also mentioned, "Significant investments are flowing into the commercial sector, particularly due to the opportunities presented by Real Estate Investment Trusts (REITs)."
Expressing confidence in the sector's growth potential, he predicted substantial investments in the commercial real estate market.
Regarding the residential housing market, Hiranandani expressed that while current interest levels are not particularly high, he anticipates growth in this area. He noted that the level of interest will largely depend on the direction of India's budget.
Hiranandani also pointed out a strong investment sentiment within the manufacturing sector, stating, "There is a significant response across all segments."
He emphasized the availability of capital in this sector, remarking, "A new paradigm is emerging, and funding is readily accessible. The concerns we once had about securing project financing are fading. If you present a solid project with a favorable return on investment, there is ample money available."
"This shift is evident here in Davos today, and I view it as a positive development for India," he added.
On the topic of foreign investment in Real Estate Investment Trusts (REITs), Hiranandani mentioned that firms like Brookfield and Blackstone are actively participating in the market.
He also addressed the influence of U.S. President Donald Trump on India, noting that Trump's focus is on American economic growth. Hiranandani emphasized the importance of finding mutually beneficial opportunities for India in this context.
"India is in a strong position; Prime Minister Modi is maintaining a balanced approach, similar to Trump's focus on America. I believe this is a reasonable stance, despite some of Trump's remarks," he concluded.
