The Indian Real Estate sector has seen a marked growth in the recent past and it is at its peak. It is expected to grow at a very good rate. Indian real estate has become one of the most attractive sector for foreign as well as domestic investors. There is a rise in demand for residential, commercial and industrial properties. There is extensive growth in development of SEZ, hotel industry, IT and ITes sector and in the standard of living of the people.
The foreign investment in India was fully opened in 2005 for foreign investors and since then there is no turning back. Now 100% Foreign Investment is allowed in India. Previously NRIs were allowed to invest in only a few sectors but now the government is allowing full investment. Many global companies like the Blackstone group, JP Morgan Partners, etc are showing a lot of interest in the Real estate sector in India. This policy will stay for next few years which will in turn help the economic growth of our country.
Indian Real Estate Investment has a lot of scope for improvement and development in commercial, residential, retail, industrial and in hospitality sector. However, the main areas of focus are townships, residential units, shopping malls, offices, retail stores and commercial complexes. The most recent sector is the IT spaces like IT Parks and integrated townships. Ideal option for long-term benefits would be investing in residential and commercial properties. Individuals prefer to make large investments as home loans are easily available and some builders are offering investors various choices for investments.
The major factors contributing to foreign investment growth is increase in purchasing power, improved demographics, variety of options for home loans offered by banks and housing finance companies and favorable changes introduced by the government and real estate professionals. So the size of the Indian real estate market is expected to touch a new high by 2020. At present the investment trend in India shows a large number of NRIs investing in the Indian real estate sector.
Foreign direct investors have been invited by “Make in India” to consider India as a profit-making market. FDI is allowed through the automatic route in housing, townships, construction development projects and built up infrastructure are all ready to make India a safe and profitable country to invest. The RBI has also granted NRIs permission to purchase property for residential and commercial purposes in India. The Government is also dedicated to launch FDI in multi brand retail, bringing in changes in the present SEZ policy to restore developer interest and develop the role of private sector in infrastructure development.
Regarding tax advantages, people can enjoy large tax benefits by investing in the real estate industry. Tax exemption is offered on re-investment of property sale proceeds in suitable possibilities. There is tax advantage in interest on housing loan raised in India. Overall, the Indian Real Estate Investment scenario is on an upward trend and the investor will be highly benefited.