Cadim: China and India Real Estate Deals

In: Business and Management

Submitted By dixitworld
Words 713
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Key risks for Investment in India * On the quality parameter of properties, India was lacking across major estate types. * Do not have financially strong infrastructure for building new properties and supporting new investments * Political risk in involved in Indian investments as it is difficult to come to any decision in the coalition government and sometimes it leads to much delay in the projects. * On Foreign exchange currency risk, Indian currency is more volatile and thus devaluation can lead to greater loses. * Indian Bond markets are not fully developed. * Investments in property and Infrastructure sectors are less risky than as compared to other sectors. * There are restrictions on investments in Kashmir, as it is military affected area. * Risk due to terrorism can decrease investor’s confidence. Similarly Maoists activities are and obstacles for investments certain regions of India. * There is legislation risk involved in India. As it has been the case with Vodafone deal where Indian government came with retrospective tax proposal to dole out tax from Vodafone deal. * Monetary policies keep on changing in India on regular basis.
Key risks for Investments in China * Like India, estate types(across all major), China lacks on quality aspect of properties. * China is riskier on political aspect. Communist government policies fears a bigger threat for Investment in China and all the types of protests are simply tackled and forced to die down. * Employment practices in China are not favourable and they produce criticism in many countries. * Lack of uniformity in Chinese strategies. * In mining sector, Chinese companies lack in sophisticated technologies. * Privately owned fastest growing companies in China are hesitant in power sharing with the overseas investment companies, thus making it difficult…...

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