Reasons why NRIs are moving to Indian Commercial Real Estate ✓ Growing market ✓ Urban development policies ✓ Growing demand for office spaces ✓ MNCs in India ✓ Government reforms in favor of Foreign Investors
The Indian Real Estate Market is Attracting Foreign Investors - What Are You Missing Out?
The biggest investment in India's real estate sector by an international private equity (PE) recently has caused a lot of activity that might be in your favour.
Why Has The Real Estate Sector Grown Exponentially?From an investment perspective, real estate is one of the highest profiting industries. After the weighing the advantages against disadvantages, investing in land presents minimal risk and high appreciation. COVID-19 also caused disruption in the market, shifting international investments from China to India. As we are entering the new normal post-COVID-19 phase, people are moving to new cities to find jobs, more influxes which is increasing the demand for residential and commercial properties, driving up the prices. The real estate sector is the country’s second-biggest job creator. The government is offering home loans at a record low rate to promote domestic demand after observing that consumer sentiments had dropped during the lockdown. Combined with various favourable demand drivers, this encourages more domestic and foreign investors to rely on real estate growth. Let’s look at these generators of demand more carefully.
Continued IT boom
Homes as integrated personal areas
Smart homes demand
Digitally empowered real estate agents
Why invest now?After the market dip created by the pandemic, several industries are opening up to allow consumers to fulfil their needs. As property prices have not reached their peaks yet, this post-pandemic phase is the right time for investors to buy properties at comparatively lower prices.
Indian Real estate – futuristic viewTo enable all kinds of investors to participate in the Indian real estate market, the Securities and Exchange Board of India (SEBI) has agreed with Real Estate Investment Trust Platform (REIT). It was the most notable change that took place for family-owned and commercially managed enterprises. Real estate developers have invested in centralized processes for the supply of procurement materials, coordinating the workforce and recruiting qualified project managers, architects, and engineers to fulfil the growing requirement for different projects across cities. Finally, although the demand of consumers was affected by the pandemic, technological innovation and increased investments rejuvenated the interest in property purchases. With the rise of properties, there is a huge potential for both industry-related growth and broader economic growth, because backward and forward relationships increase the auxiliary sectors. Therefore, in the coming years, we can expect significant advancements. Are you looking for an ideal platform to start your real estate investments? Then here is Assetmonk, offering you the best investment opportunities in top cities like Bangalore, Hyderabad, and Chennai. The company offers a wide range of opportunities that are categorized as Growth, Growth Plus, and Yield Products. Our products offer investors an IRR of 14-21%. Visit our website to kick-start your investment.
Indian Real Estate Market FAQ'S
The real estate business is the second-largest creator of jobs in India following agriculture. The Indian urban landscape was also affected by the continuing demand from the information technology (IT) sector. According to the predictions, demand in the next five years would be 66 million square feet of IT space. Human resources have taken on tremendous importance as a central part in the IT industry: recruitment and housing, both on-site and at home. As such, the necessity to create space for people to work and live continues to increase, which, at the same time, will lead to the creation of other allies.
India attracts foreigners to invest in real estate with commercial developments and innovative residential opportunities. The lower value of the India Rupees is another factor attracting foreign investors. With IT developments in India, there is a huge demand for commercial and residential spaces as well.
In FY21, Singapore emerged as the leading foreign investor in India, accounting in April-December 2020 for FDI equity of 15.71 billion dollars. Overall, 29% of India’s FDI inflow is from Singapore. The United States was India’s second-largest investor and represented 23% of the FDI.