The Indian real estate sector, over the course of several years, has seen many ups and downs with respect to the investor sentiments. And the government keeps coming up with regulatory reforms to encourage investors to park their money in the realty sector. Recently, with the easing of Foreign Direct Investment (FDI) rules and several other changes, Indian property market is seen as a promising destination by global investors. Investment firms keep a continuous track records of the performance of different property markets and have derived much confidence from the Indian Realty sector, lately.
As reported by the Economic Times, the CEO of international commercial real estate service provider Cushman and Wakefield opined that the sentiments in the Indian realty sector have been improved over time. Modi government has imparted a sense of optimism in the property market which is why India is on the radar of foreign investors. Developers are also trying to match their products with the global standards in order to offer something the investors can’t refuse.
Stuart Roberts, CEO, Asia-Pacific, Cushman & Wakefield also suggested a few focus areas that need to be catered to for the betterment of global investment scenario in the Indian property market. Such as:
Transparency- Roberts emphasized on transparency the most. To improve the transparency levels, the government should bring a major fraction of the processes online. Some states have already resorted to making the entire realty investment process online. This increases confidence in the eyes of global investors.
Better Infrastructure and Town Planning- What drives investors towards a city is the state of its infrastructure development. If not fully, the infrastructure of the cities should at least be on the rapid development spree. There is more usable land in India around the commercial centers but due to the lack of proper infrastructure, it is not accessible. The Housing for All initiative is an ambitious one but can be achieved only if proper town planning is in place.
The international investors have a close watch over different property markets and some also make small initial investments to study the growth patterns. The changes in regulations have eased the flow of foreign funds into Indian realty and this is also giving them a positive perception about the market. Investors are highly interested in Delhi and Mumbai as one is the traditional capital of the country and the other is the economic capital.
Transparency and Town Planning are the two facets that need to be brought to attention. Investors have already started to find India as a promising investment destination and in the coming time they are expected to focus on long term investment as well.
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Article Source:- Economic Times