The recent of appointment of Narendra Modi and the installation of his NDA government has breathed new life into the real estate market, with many real estate investors keen to evaluate new opportunities as a result.
While the Indian real estate market has remained robust in recent times, there have been issues that have left many NRI investors sitting on the fence rather than acting on new real estate developments, such as construction delays and issues with developers. Modi has been vocal in his support to address issues that impact real estate investment, naming three chief areas of focus in the NDA manifesto. The development of 100 new cities, implementing a new land use policy, and rolling out plans for low-cost housing are all on the agenda. With these marked improvements come plenty of opportunities for real estate investors, and developers keen to find property buyers overseas.
What’s Modi’s plan?
Modi’s modus operandi involves increasing Foreign Direct Investment into the real estate sector.
According to reports, optimism has already returned to global real estate investors, who are expected to increase activity across major markets. The total amount of FDI the real estate sector received in the 2013-14 financial year was just $29 billion, a figure expected to rise to over $60 billion under Modi’s leadership.
Enhancements to infrastructure are also anticipated, with improvements to areas like the Delhi – Mumbai Industrial Corridor expected to not only increase connectivity between existing cities, but to act as a prime destination for new developments. Where property developers are concerned, the new government is keen to both regulate and expedite planning approval, which will combat construction delays, ending what has been an ongoing issue for many projects in recent years. Lastly, the development of over 100 new cities will of course offer investors new markets in which to buy property as new commercial and residential developments get underway.
These improvements, and the optimism they will elicit are set to bolster housing market activity significantly – so much so that Santhosh Kumar, CEO Operations, JLL India, has predicted that property will become the “most popular investment option” in coming the years. Citing “significant appreciation in real estate prices on the heels of higher demand,” Kumar confirms that prices along with the overall conditions of the real estate market in India are only set to improve.
To find out more about how the new government’s plan will benefit property investment in India, follow the Unesta team @UnestaRealty to keep up to date with all the latest Indian property developments, market news and opinion.