Investment in Indian real estate is a lucrative option as against other asset classes, according to Dr Niranjan Hiranandani, President of the National Real Estate Development Council.
Sound regulatory environment, increased transparency and accountability as well as the establishment of escrow accounts under the Real Estate Regulation and Development Act, coupled with a favourable exchange rate for Non-Resident Indians (NRIs) have made the housing sector buoyant, he said.
“New housing launches across top seven cities in India have increased 27% year-on-year in January-March 2018,” he said.
The Modi government has launched various initiatives, including Smart Cities and ‘Housing for All by 2022’, which have led to positive results.
In addition to that the focus on affordable housing as a segment has been given infrastructure status as also other benefits including tax benefits and subvention schemes.
Investments by expatriate Indians have steadily grown over the past few years. Reports say that such investments have doubled from $5 billion in 2014 to $10.2 billion in 2018.
A recent survey mentioned India’s urban population is expected to reach 800 million in the next 30 to 35 years, becoming equal in size to India’s rural population.
The Indian real estate market is expected to touch $180 billion by 2020. Housing sector is expected to contribute around 11 per cent to India’s GDP by 2020.