Fostering estimable asset value and benign regulatory development Indian real estate sector is likely to inflate buyers’ and investors’ interest to the current market. These aforesaid facts are turning out well in terms of luring future investments to Indian realty sector. A recent market report has claimed that Indian real estate sector to draw $7 billion in 2017, from $6 billion in 2016.
There’s no such remarkable headway in traditional realty sector such as- luxury residential and commercial requirements, whereas alternative sectors such as retail, warehouse and affordable housing sector under PMAY flagship came to the forefront.
“Affordable Housing Sector-is a striving megarcorp, which has currently unlocked massive scope for the domestic and foreign investors. It is the ideal sector of realty at present, where a minimal lay-out can return maximum within a limited time frame,”-said Mr. Mahesh Somani, Kolkata RERA and Realty expert.
As per a CREDAI-CBRE report, real estate sector in India is witnessing record interest from offshore equity investors, large Indian corporate and high net worth individuals (HNIs) as investors deem that the sector now proposes a fair outlook with optimum amount of investment liberty. The report highlighted that recurring reduction in interest rates have rev up the investment measure. This has caused the cost reduction of doing business for all investors’ classes. Still ‘structured debt’ has grown from being a “high-cost source of funding” to being a very viable source of funding with consecutive interest rate cuts.
Additionally, the inception of Real Estate (Regulation & Development) Act, 2016 (RERA), Goods & Services Tax, Real Estate Investment Trusts (REITs), easing of FDI norms, Demonetization and Benami Transactions (Prohibition) Act have set the sector a level-playing-field for corporate industries for making their ways to Indian realty market and snowball their business.
A number of governmental policies and major reforms have further determined a broaden investment purview in the business of realty. All these moves are entitled to manifest more transparency in the real estate transactions and to shape an organized investment sector.
The four cornerstones- Regulation, Finance, Customers and Technology have been aggressively updating in order to refurbish the real estate investment and supply. 2017 real estate market will be around the ready-to-move OC ready properties, one can look ahead to a greater than before appetite amongst developers/investors for development equity. Land transactions are likely to stay on high, as new funds and institutional investors, foreign developers expected to uphold assets, even as corporate, minor developers will be eager to monetize assets and retire debt.
According to a leading property portal in Kolkata, the report also pointed out the change in demand pattern of current market. Rather than choosing the luxury ones investors are holding fast the affordable housing sector. For commercial properties-it’s the avant-garde office spaces have being continuing still forerunner. What under bigger investment zoom are investing in retail and warehouses to grip supply chain of the country. Better and bigger warehouses have come to light in the chief markets of Indian economy.
-Somani Realtors News Network