The real estate sector is growing and is estimated to reach USD 1 trillion. It is this growth that is generating interest from large global investors like Blackstone, Canadian Pension Fund, Xander, GIC Singapore, Allianz. According to data from the Department of Industrial Development and Domestic Trade Policy (DPIIT), construction is the third largest sector in terms of foreign direct investment inflows. In the period from April 2000 to March 2021, foreign direct investment in the sector amounted to $50.8 billion US dollars.
However, the myth for Indian real estate opportunity is that it is only relevant to top cities and larger-scale projects.
On the contrary, it is the Tier 2 and Tier 3 cities that contributed 75% of the aggregated GDP and have been seeing the fastest growth. Seen in the real estate growth of cities like Chandigarh, Goa, Nagpur etc. Most global investors have not focused on the cities. Also, the banks and debt funds have reduced their exposure and the pandemic has further aggregated the situation. This has resulted in a funding gap of USD 100 billion in the coming years.
Mid and smaller sized property developers in these markets end up seeking funds from private investors paying high-interest rates, up to 30% per annum
LandOrc is filling this gap by bringing alternative capital Decentralised Finance (DeFi) and tapping into global investors who are seeking higher returns with the security of collateral. The land title used as collateral for lending and made available via NFT (non-fungible token) allows DeFi investors to widen their portfolio and get access to more secured asset lending while still getting aggressive returns.
LandOrc has an operating subsidiary in India with its initial set of projects available for staking. Allowing DeFi investors to stake and gain aggressive returns. The vetting of the projects by independent lawyers and valuers and transparency of collateral available on-chain via NFT and secure by land collateral provide reassurance to global investors.
LandOrc and its alternative approach to lending is breaking myths to give a boost to the real estate industry in India. And it is looking forward to entering its second market in Australia, very soon.
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