Demand for real estate in India looks set to soar following the government’s initiatives such as ‘Smart Cities’, ‘Housing For All By 2022’ and infrastructural developments.
There has never been a more opportune time for foreign investors to invest in Indian real estate. Important Government reforms to the real estate, infrastructure and construction sectors have boosted foreign investor confidence, resulting in a rise in FDI and significant increases in the average size of investment. The introduction of REITs has enhanced investor confidence and with the passing of a REIT Bill looking to come into fruition, the Indian realty industry is set to experience continued levels of growth in 2016 and beyond.
Government initiatives such as ‘Smart Cities’ and ‘Housing For All By 2022’ have not only assisted with the growth of the economy, they have also helped to gain an improved image of India as an investment hub and land of opportunity. In the current investment cycle alone, at least USD2.2 billion has been accumulated in FDI, serving further to prove that foreign investors’ eyes are firmly on India as an attractive investment hotspot.
Since 2014, we are not only seeing an increase in the number of foreign investors, we are also seeing an increase in the average investment size which has risen from USD134 million to USD184 million. This figure can only increase as more reforms are made to ease the way for doing business in India.
The luxury real estate market is seeing a positive trajectory, as the demand for fully-integrated township communities increases. With the economy consistently seeing a healthy, sustained growth, and recently predicted by the UN to be the fastest growing large economy in 2016, India is one of the fastest growing countries for high net worth individuals. Employment opportunities are in abundance and top-level incomes are at a record high, and HNWIs are increasingly investing in luxury branded residences as they look for homes that match their affluent lifestyles.