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Real Estate NCR
by sachin agarwal
The real estate market of India is becoming a hot selling property and is attracting
the attention of real investors as they are getting huge profits and high returns on
their investments. The real estate in India may still be a fragmented industry with
high transaction costs and an absence of complete transparency; but it is whetting
the appetites of domestic and overseas investors. In India, the world's
second-fastest-growing economy, after China, changing government policies and a
focus on infrastructure are driving up the demand for housing developments, malls
and offices.
But these days, the country's $12 billion real estate market is expanding at a 30
percent annual rate. With the economy expected to continue growing rapidly — the
rate is about 8 percent — and a swelling middle class with an appetite for quality
apartments, modern malls and a variety of stores, the forecasts are rosy. Analysts at
Merrill Lynch predict that the real estate market will grow to $90 billion in 10 years.
The participation in acquiring the property in India is no longer game of the rich but
now with options of easy loans and payments the middle class has also got the feel to
buy property in India. A recent report by the Chamber of Indian Industries pointed
out that globally real estate is and should always be considered as an
income-generating asset. Indeed, real estate is an attractive investment option, as it
gives regular returns and also provides capital appreciation. This scenario is
presently unfolding in India.
For investors seeking the high returns that are no longer possible in the mature
European and North American real estate markets, India and China are hot. India has
encouraged Non Resident Indians (NRIs) with tax incentives and relaxation of foreign
direct investments (FDI) rules, are moving towards India for investments and are now
assured about their investments and high yielding profits. The RBI has relaxed the
rules further for NRIs with respect to repatriation of foreign exchange on real estate
investments. Besides being a safe destination, India offers 10 to 12 per cent returns,
perhaps the highest in the world.
It is a dream for the NRIS to have a base in their homeland and now all this is very
easy for the investor.
The rental rates in India are among the highest in the world as returns on investment
on the capital value of the property. Investment in commercial property, where the
returns are 10 to 15 per cent, is a proven option, while residential property is always
in demand for leasing. Considering the current property rates and housing loan
interest rates, it is worth investing in real estate in India.
All these features make the Indian Real Estate a hot selling cake in the open market
and leave all its investors with a big smile on their face.
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