Today, India is a land of opportunity for business and investment opportunities because of a new real estate regulatory bill, The Real Estate (Regulation and Development) Act, 2016, which makes it mandatory for all commercial and residential real estate projects greater than 1000 meters, to register with theReal Estate Regulatory Authority (RERA). They designed this act to provide better transparency at the start of any real estate project to give buyers and developers greater quality customer satisfaction.
This act also helps guarantee that 70% of the money you invest is always available, kept in a separate account and used only for construction activities. Because of this act, customers as well as the RERA, are continuously informed, updated, aware of project layout, approval, land status and construction schedules, which helps prevent any delays in the completion and handover to the consumers. Here are more reasons to invest in Indian real estate now so your business can become a part of this exciting, lucrative global opportunity.
Growth In The Economy
While many of the world’s major economies still struggle, India is an attractive bet for real estate investment today because its middle class is growing with more money to spend and, the youth population offers huge potential for the future. We verify this by looking at recent reports that show India as remaining the leader among all nations in the global consumer confidence index with a score of 134 points for the quarter ending March 2016. And Apple is backing up this economic growth by recently filing an application to open its first retail stores here in the near future. Prime Minister Modi has also garnered investments from companies such as Amazon, who added $3 billion in its India operations to take its investment in the country to over $5 billion. More incoming investments like these, will continue to create new jobs and increase the standard of living for India’s citizens.
According to recent United Nation forecasts, India expects to have more than one million people in around 68 cities by the year 2030. As this number continues to grow each year, there is a huge need for affordable housing. This report also shows that there is a shortage of almost 18.8 million urban homes in these areas today and they need development projects to accommodate these people as well as prepare for this estimated 250 million more. To help with this, the Indian government has announced the Housing for All by 2022 Mission, to build up these under-developed cities with more participation by private developers. The Government has announced also that with this plan, investors will have tax exemptions included along with the recent passage of the Real Estate (Regulation and Development) or RERA Bill, to provide more positive development for this housing sector. And, home buyer confidence in the property market will revive with this Bill now in effect.
The Rise Of The Middle Class
Euromonitor International, the world’s leading independent provider of strategic market research, says that over the 2015-2030 year period, the Indian median income per household will increase by 89.8%. This means that the Indian middle class will have more spending power and will have quicker responses to new consumer opportunities. This makes this an excellent time for companies to develop properties there in preparation for this economic turn and focus on affordable products to create more brand awareness. Not just for consumer products, but healthcare, education, communication and transportation will all have more consumption growth and businesses can provide services to this group, who will want convenience, quality and variety and are willing to pay for it.
Lack Of Opportunities Globally
Changes in Government regulation is having a major influence in the Indian real estate investment market with policies giving international investors the freedom they wouldn’t have in some other countries. These benefits will allow them to have easier and more secure investments, convenient diversification in their portfolios and increased accountability and reliability in these real estate business transactions. This is why the Indian real estate market has become one of the most preferred destinations in the Asia-Pacific today with overseas funding accounting for more than 50 per cent of all investment activity, according to recent reports. All of these sectors–housing, retail, hospitality and commercial, will continue to grow, with a demand for more office space as well as urban and semi-urban housing requirements.
As you can see, India’s real estate market is drawing some of the biggest names in global investing today and businesses need a trusted advisor to guide them along the way. At Waugh Global, we are a sub-continent portal with a focus on Indian real estate, that guides investors with straight-forward information to help iron out potential risks. We select our development partners based on quality, accountability and transparency, rather than the fees they can pay, which lets you know you will always have the honesty and professionalism you need.