Why to Invest In INDIAN Real Estate?

By:Supriti Chatterjee 2018-12-26

The world’s largest asset manager will inspired by a well maintained market in INDIA for a long term. Real estate market is one of the globally recognized sectors. Housing, retail, hospitality and commercial these are the four sections of real estate. Real estate’s growth is applause by the growth of the corporate environment.

In terms of direct, indirect impact in all sectors of the economy, construction is third among the all 14 major sectors.

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Contribution of the real estate in Indian economy

Real estate is one of the profitable sites to invest in a long term without any volatility. The property value increases each year after investments.  It will add your profits. At once real estate was one of the top businesses. After a fall, the industry rises again and grows up.

Real estate the promotional venture

The best investment option is investing in the best position with good developer. Generating generous real estate and great funding has been a great way. INDIA’s GDP is 14% for real estate. It will be remain because it is regulated by Real Estate Regulatory Authority. Real estate has received transparency in business for Real Estate Regulatory Authority. It is a tool to remove unusual builders. As per the prediction of the experts, real estate will reflect its position in INDIA’s economy. Stable market trends, passive income on rentals, taxation benefits, returns along with security these benefits are associated with real estate.

Size of market

Real estate market of INDIA will reach on US dollar 1 trillion within the year 2030. The contribution will be 13 % of INDIA’s GDP within the year 2025. Retail, hospital and commercial sectors are providing the needed infrastructure. For this these sectors are also growing significantly. IT, retail, consulting, e-commerce recently have registered high demand for office. As expected, 600 million square feet commercial stock will cross in 2018 in INDIA and leasing office space will cross 100 million square feet in the top eight cities in 2018 in INDIA. The Delhi-NCR has made the most contribution to the exploitation of the grade A space which is expected to cross 700 million square feet within the year 2022.

Investments

In recent times there has been a high growth of real estate sector along with the increase in the demand for residential and office spaces. By 2026, private equity investment in real estate is expected to increase  to US dollar 100 billion which will be benefited for tier 1 and 2 cities. Investment of private equity and sectors has been reached US dollar 2.99 billion in January-august 2018.  According to the information released by the Department of Industrial Policy and Promotion division, the Foreign Direct Investment equity flow has increased to the US dollar 24.87 billion in April, 2018.

Embassy office parks announced in September, 2018, that it will raise around Rs. 52 billion as per INDIA’s First Real Estate Investment Trust.

The new housing launch in INDIA’s top seven cities has increased 50% quarter-on-quarter in April-June 2018.

One Indiabulls was obtained by Blackstone group in Chennai, around 900 crore in may2018.

Steps are taken by Government

A various steps for the development of the sector with their states has been taken by the Government of INDIA. The Smart city project is a plan to build 100 smart cities. This is an very important and prime opportunity for the real estate companies.

Steps taken by Government of INDIA

  • Pradhan Mantri Awas Yojona Urban- 6028608 houses had been approved in September, 2018. 1427486 houses had been approved in 2017-2018. 321567 houses were approved in March 2018.
  • Creation of National Urban housing Fund has been approved by PM Narendra Modi for Rs. 60000 crore.

Securities and exchange board of INDIA has approved the Real Estate Investment Trust which allows all types of investors to invest in the INDIAN real estate market. It will create an opportunity to make Rs 1.25 trillion in the market in a year. INDIAN real estate developers have shifted and accepted the fresh challenges for responding to a growing consistent consumer base and considering the visibility of globalization. The shift of professionally operated people from family owned business laid to the most marked changes. In order to meet the growing need for managing multiple projects across the city, real estate developers invest in source material and organize manpower and invest in lighting to hire skilled professionals in project management, architecture and engineering. The increasing flow of FDI into INDIAN real estate has encouraged increasing the transparency in the market. Developers have to revamp their management and accounting systems to meet the appropriate persistence standards. This will definitely attract the funding.

As a result, INDIAN economy has increased the confidence of investors worldwide. The platforms are bringing back those investors also who were so far from INDIA for the increasing global economy. This will make INDIA, an attractive place for investments.

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