Japan's leading developers are pouring millions into India's thriving real estate market, driven by a resurgence in office, logistics, and residential sectors and a strong belief in India's long-term economic growth.
Post-pandemic, major Japanese firms like Sumitomo Realty & Development, Sumitomo Corp., Mitsubishi Estate Co. Ltd, Mitsui Fudosan Co. Ltd, Mitsui O.S.K Lines Ltd (and its subsidiary Daibiru Corp.), and Marubeni Corp. have made significant investments, primarily in Mumbai and the National Capital Region (NCR).
Investment Momentum Accelerates:
Why India? Sumitomo Corp. explains:
“India is expected to continue experiencing a demographic dividend, along with maintaining economic growth in the 6% range. In addition to its domestic demand-led economic structure, the country is increasingly recognized as a global business hub, particularly in the IT, financial and service sectors.”
A Long-Term Strategy:
Unlike some investors focused on short-term gains, Japanese firms are taking a patient, long-term approach. They're focusing on early-stage projects and land acquisition, demonstrating a strategic bet on India's future.
“Japanese capital is demonstrating rare conviction by backing early-stage development deals…This is not opportunistic investing, but a strategic bet on the country's long-term growth trajectory,” says Nishant Kabra of JLL.
Key Investments Highlight:
Expert Insights:
“The Japanese came to the party late, but they are very long-term investors…Japanese real estate investors have no pressure to sell or exit investments…which makes them different from the others,” says Shobhit Agarwal of Anarock Capital.
With India's real estate sector booming, expect to see even more Japanese investment in the years to come, marking a significant shift in the landscape of India's property market.
