JLL Invests in Bangalore's Luxury Housing Market
Global property consultant Jones Lang LaSalle (JLL) has chosen Bangalore as the location for its first investment from its maiden India-focused real estate fund. The company is planning to invest Rs. 30 crore in the development of two luxury housing projects in the city.
This investment is part of JLL's Segregated Funds Group, a closed fund that has amassed a total of Rs. 300 crore. JLL has identified four potential sites in Bangalore and is in advanced discussions with two local developers.
JLL's Strategic Move in a Stable Market
The company received approval from the Securities and Exchange Board of India (SEBI) last year for this new investment plan, specifically designed for the Indian real estate market. Although the fund faced challenges due to the sluggish real estate market and global economic downturn, the firm now sees an opportunity in Bangalore's resilient residential sector.
Bangalore's residential market is viewed as a prime location for private equity investment within India. Despite the pervasive sluggishness that affected the Indian real estate market throughout 2012 – with close to $2 billion (approximately Rs. 10,800 crore) worth of projects launched amidst the downturn – Bangalore's residential market remained relatively stable.
Bangalore's Allure: Jobs and Luxury Housing
The increasing demand for luxury housing in Bangalore is likely a key factor in Jones Lang LaSalle's decision. The city's robust job market has consistently positioned it as a desirable destination for homeowners, further fueling the demand for high-end residential properties.
The firm's investment signifies confidence in Bangalore's real estate market and its capacity for growth in the luxury housing segment.