2016 has been an exciting year for the Indian real estate industry. While most of the year saw a balanced growth, surprise demonetization by PM Modi came as an unexpected event for the country. A number of other positive aspects like the final notification of RERA, establishment of Real Estate Investment Trusts (REIT) and the economic ups and downs have had various short-term and long-term impacts on the real estate market of the country.
Leaving the year 2016 behind, let us talk about what’s in stores for real estate in the coming year.
REITs will attract foreign investors
Being a fast-paced sector and accounting for second largest chunk of India’s employment figures, real estate industry needed a new zeal and zest. After a long wait of seven years, REITs were finally approved by SEBI in 2014 with hope that it would bring more transparency, growth and accountability in the sector. The concept has already been successful in more than 20 countries including big economies like USA, UK and France. They provide a less risky investment option thus adding credibility to the sector. Global investors will be attracted to Indian real estate market which is otherwise seen as a sector dwindled with corruption. Such legislations will work in favor of investors from India as well as abroad. [Read more…]