The real estate market of India has opened a multitude of opportunities. Yet, it lacks international parameters as mentioned by the Royal Institution of Chartered Surveyors, a UK-based firm engaged in setting standards for land, property and construction industries. Red this article to know what affecting investments in the Indian real estate.
In India, real estate investments are considered safest way of building assets. This is one of the traditional ways for most of the Indians followed by buying gold and silver. Indians prefers investing in real estate as this is a less volatile market as compared to the stock market. Indian investors are pumping money in newly launched projects. The rise in incomes is also a good reason for the number of professionals buying properties.
The pattern of investments in the Indian Economy needs to be changed. Rather than securing the future, it should be a proper profession. The government of India requires promoting it, as there is lack of investments especially from the foreign markets.
The Indian Real Estate offers a plethora of options. Property developers in India offer from independent houses to luxurious villas, from small flats in builder floors to well-appointed apartments in residential projects. The commercial properties also are varied. Investors can opt for a variety of residential and commercial realty.
Report of Real Estate Investment in the country for the last two years indicates foreign investors are shying away. Even in the future, foreign investments in the Indian Real Estate will be limited as investors will be cautious. This is because the properties in India do not follow international standards. The CEO of the Royal Institution of Chartered Surveyors (RICS) says that the lack of international realty standards in the Indian properties is the chief reason for dip in investors from other countries.
The boom in the realty sector of India drew hordes of international investors. The period of 2006 and 2009 saw about $20 billion in investment in the Indian real estate market. After this period, the investment in properties was slowed. The CEO of RICs added that the India is projecting herself as an investment destination was not up to mark.
The global slowdown had also made the foreign investors cautious about putting their money in the Indian realty. The private equity firms invested in properties between 2006 and 2009 had returns sub-par from what they had hoped and been promised. Many firms also fear of losing money as some realty projects have not taken off. Even there are some properties stuck in litigation with their investee companies. To make India a realty friendly destination, the mindset needs to be changed.
The real estate and construction sector has still not acquired complete industry status. To get full-fledged returns from realty investment has to rise to global standards just like the west. The BRIC nations attract investors but since real estate investment is not termed as a profession, there is lack of standards. The CEO of India further added that for India to be a top world economy, people should be trained in the construction and real estate professions.
The biggest challenge for the Indian properties is urbanization. There is no dearth of capital flow in the global market, but what is stopping investors in India is the attitude towards this sector. The professionalism and international standards needs to improve. India needs to create winning cities, just like international standards where people will like to live and work together.
In conclusion, it can be said that the Indian government should take steps to promote the real estate sector as an industry and introduce new policies that will attract foreign investors.
Author writes on behalf of 99acres.com, a leading online portal thriving to solve the consumer’s requirements in real estate segment. The site offers a galore of information regarding the real estate property such as flats in Mumbai, houses to buy, sale or rent at different locations like Delhi, Mumbai and Bangalore etc.