April 09, 2015
During the last quarter of 2014, National Housing Bank (NHB) Residex Index clearly mentioned that residential property prices showed an upward trend. Moreover, the first half of the gone-by year a sharp dip in the property prices. However, 2015 was expected to be a year of recovery and the much-needed recovery happened as well.
The Budget 2015-16 brought in the respite by easing the FDI norms, giving a green signal to the Real Estate Investment Trust (REITs) and a little attention given to the ‘Housing for All by 2022’ are some of the positive aspects that were visible. There were a number of developments experienced in the realty sector of India that has enabled the country shine on the urban landscape. Here are some of the factors that defines the success:
1. Excellent Overseas Investment Destination
According to a news report, India is ranked 3rd amongst the top most overseas investment destinations. Further, the country is at rank 133 in the list of companies that offers an easing environment for doing business. These aspects make India, an eye candy for some of the biggest foreign investors and business bodies. The country is regarded as one of the well-regarded investment destinations for businesses pertinent to nonfinancial services, financial services, heavy industry, and light industry. With mushrooming industrialization, the real estate sector has also accelerated to its peak and has managed to attract the attention of interested real estate developers from all over the world.
2. The GDP Growth
Indian economy is moving at a good rate, albeit slow. According to the data by the prestigious Economic Survey, the growth anticipated in the year 2014-15 was 5.4 to 5.9 percent. This overcame the sub-5 per cent GDP growth of past two years. This year, 2015-16, as well, Economic Survey says that India is making a good comeback with a growth percentage of 8.1-8.5% in 2015-16. The figure has exceeded the set expectation, which was 7.4% in the financial year ending on 31 March. The economic growth in the country has given enough reasons for other countries to come and collaborate for their business needs.
3. The Noteworthy FDI Inflows
The government of India has currently eased the FDI policies and norms in view of the realty investment. Currently, the real estate sector of India is recognized as the fourth biggest in respect of FDI inflows. The government of India has eased the policy and has allowed FDI of up to 100% in the development projects for township and settlements. The amount is constantly growing and is expected to reach the level of US$650 billion by the year 2020. By the time this happens, Indian real estate sector will become 3 rdlargest real estate market in the whole world by then. The ease in policy has raised the interest of the investors in Indian market.
4. The Successful Housing Segment
The Indian housing segment has grown by leaps and bounds by the starting of the current year, 2015.The developed cities have a flourishing real estate arena owing to a high migration rate as a resultant of fiery employment market and a good life.
One of the high-points here is the demand for residential apartments in Bangalore. This very city experiences a good number of migrants from different parts of India. Expatriates from different parts of the world are flocking India at a steep rate and this has surged the residential developments in the country.Other cities that are in the same cadre are Chennai and Hyderabad. These aspects have actually made thereal estate business breathing in India, steady and growing.
5. The Commercial Arena
There is a whopping demand of office areas in India as more and more foreign investors are looking to expand their business in the country. The business collaboration and India’s eased out entrepreneurial policies have led to the rise of the commercial arena here. Multi-national firms and corporations are eyeing upon India for trading purposes and are even looking forward to setting up their facilities in the country. The rising demand has compelled the realtor to actually focus on leasing the office spaces and renovating them or stationing new ones from the scratch. Commercial segment has played a major role in adding shine to the real estate market of India.
Achieving the 20thposition in the countdown of 20 realty investment destinations has been one of the biggest things to have happened to India. The ease of doing business, high migration rate and gradual economic growth are some of the aspects that place it to that level of excellence.