India Among The Hotspots For Foreign Investments

Post demonetization and GST application, the Indian economy was in doldrums for the time being only to pick up a faster growth pace in the future. The International Monetary Fund (IMF) in World Economy Outlook update said the future of Indian economy seems positive. After the dip in oil price and as inflation eases, India is predicted to be one of the fastest growing economies of the world. The international body supported its prediction stating that India is projected at 7.5 % this year and 7.7% in 2020. India will outperform China, the latter’s estimated growth is predicted at 6.2 % in these two years and with UAE and Singapore’s GDP annual growth rate for 2020 being 3.3% and 2.6. This growth will be backed by gain from the recently revised Goods and Service Tax, manufacturing sector contributing to GDP, improvement in nationwide infrastructure by introduction of water transport, better roadway and railway facilities and higher FDIs.

With the overall growth we are also expecting a boom in the real estate sector that would not only induce sales but also reduce the unsold inventory of the realty sector. Properties within 45 lakhs fall under the affordable housing category, the sales tax for which has been reduced to only 1% from 8%. The 7% drop in sales tax on under-construction housing projects and a slash of 7% sales tax on the newly classified “affordable housing” projects is a relief to the real estate sector that will encourage more buyers for homes falling under this budget. Exemption of tax on unoccupied houses and the capital gains relief on a second house contribute towards investment in real estate property for people living away from their hometown. Based on residency and ownership pattern, the terms of leave & licence are getting reformed. With the power of attorney becoming an important tool, the residents abroad can lease out their house on rent without worrying much about the hassles that may follow while the owner is abroad. This has therefore, taken many residents abroad in confidence  to invest in real estate in India.

Wadala in Maharashtra, New Town in the outskirts of Kolkata, Khadadi in Pune, outer Ring Road in Bengaluru could be termed as business districts  for their upcoming commercial and residential projects. These rising commercial hubs change the way people live, work and commute in these cities. When a business district flourishes, it boosts the demand for residential real estate in the entire region which in turn kickstarts growth of residential projects. With good infrastructural facilities, sustainable real estate and market viability, these cities make up for the most famous residential markets in present times. India boasts on these cities that will emerge as the most profitable destination for real estate investment.

As the US Dollar, Dirham, Euro and Pound grow stronger against INR and keeping all the above factors in mind, India has become one of the most preferred destinations for abroad investments. It is the most ideal time for investment in residential, villa and commercial projects by foreigners. The wide bandwidth of property prices that the country offers in its different cities caters to the affordable as well as the premium and luxury segment of foreign investors. Today’s investment promises a healthy return tomorrow as the property prices are expected to rise soon in future.

Pune  – The rising city

200 km away from Mumbai, Pune once a dormant city has risen from its state of hibernation and is buzzing as India’s IT hub today.  On the parameters of governance, socio-economic and physical infrastructure, the Ministry of Housing and Urban Affairs considers Pune to be the most livable Indian city. Gauging and anticipating the completion of metro rail corridor 1 and the second corridor in the year 2020, the connectivity in the north-south Pune route will enhance and ease the heavy traffic along the east-west route of Pune. The Bus Rapid Transit System along the Pune-Mumbai Highway also offers a facelift to Pune infrastructure. The Pune Municipal Corporation approved IT Parks in Aundh, Baner, and Kharadi will create more job opportunities. The city’s proximity to Mumbai, emergence of educational institutions along with MNCs and the Mumbai-Pune Expressway has made it a much sought after city for dwellers, thus catalyzing the real estate investments. For its rising job opportunities, education, healthcare facilities and lower cost of living, people will flock to Pune. Housing locales like Wakad, Pashan, Vishrantwadi, Hinjewadi, Pimpri, Kharadi, Wakad, Talegaon and Bavdhan would see a surge in housing demand.

Keeping all the above factors in mind that account for rising demand for rental properties, Pune has become one of the most preferred cities by the NRI community for real estate investments. Foreigners abroad can consider this the most ideal time for investment in residential, villa and commercial projects in Pune. Putting the purchased property on rent would ensure a steady and continuous income. Today’s investment also promises a healthy return tomorrow as the property prices are expected to rise soon in future.

Mumbai – Gauged by broadness of its vision and height of its dreams

As per reports the increasing property prices in Greater Mumbai is pushing the buyers towards the peripheral areas of Mumbai, where properties are available within an affordable range of Rs 25-30 lakhs. For their lower cost of operations, places like Airoli and Vashi in Navi Mumbai are becoming the new destination of IT companies. As a result of this and for greater affordability, good infrastructure and connectivity to the main city, the demand for rental properties is growing high in this region. Statistics say, due to the rise in housing demand in the last 7 years, 1.8 lakh plus units have been launched in Mumbai’s western and central peripheral regions. Maharashtra chief minister, Devendra Fadnavis announced that Wadala is a new business district with 64 hectares proposed for residential and commercial projects. Wadala, characterized by infrastructural developments in a planned way is attracting large residential projects and has become a great investment destination. This place is witnessing a high demand among the real estate investors for its ease of connectivity to different parts of Mumbai. As Thane is home to many offices, therefore sale for residential properties in the area is very much in demand. Factors like improved connectivity, greater affordability  and rise of alternate commercial centres could lead to increased demand for residence in the eastern part of the Mumbai Metropolitan Region, Bandra East. Malad is also among the most preferred places for residential options under affordable range, simplified living with good infrastructure, connectivity and its proximity to the giant corporate park – Mindspace. If you want to invest in real estate and rent out your property to Mumbaikars, investing in affordable housing in the Panvel region would be a profitable deal. This is a belt of mass employment that harbours companies like Larsen & Toubro Limited, Reliance, IPCL, ONGC etc. With the international airport easing out connectivity in this region, your property will never fall short in demand and high in ROI. Chembur is also a great destination for properties at affordable rates. Its proximity to Lower Parel and BKC commercial places has higher chances of yielding a good ROI if leasing out your property.

Mumbai has these pockets which are growing significantly with the city’s exponential growth. The city and area in its vicinity could be most rewarding for foreign investors. Investors abroad could invest a reasonable price and expect a good return by leasing out affordable flats on rent.

Kolkata – A city with soul

Kolkata, also known as the city of joy is a favorable pick of property investors. For its remarkable infrastructure, improved employment and education facilities, migration in the city has become common. The city offers a plethora of options for choosing the best property or villa. Every region of Kolkata has top localities so that a buyer never falls short of options while making the best realty investment. Eastern Kolkata has maximum property seekers or buyers in the Keshtopur, Salt Lake City, EM Bypass region. New Town, Rajarhat steals the spotlight when it comes to choosing the realty hotspot in North-eastern fringes of Kolkata. Comprising of an IT park and commercial complexes, New Town is a fast-growing planned satellite city. 11kms away from the airport and 3 kms from NH-12, the well-planned suburb offers renowned hospitals, schools and recreational places alongside serving as the IT hub. Property price per square foot ranges between Rs 2,550-Rs 5,860, a deal worth investing in the Kolkata Metropolitan Area. Residential properties leased out on rent is in high demand among the students and office goers of this region. Therefore, renting out your newly bought property could fetch a fast flowing income out of the realty investment. Planning to lease out your newly bought property in West Kolkata?  Howrah, Uttarpara, Santragachi and Konnagar are the most sort-after localities in this region. Tollygunge, Joka, Behala and Picnic Garden make for the famous localities in South Kolkata. Along with Kalighat, and Gariahat, Bhawanipur which barely has a price growth of 3.7%, ranks high in terms of livability and could be termed an investor’s destination.

Apart from apartments there are independent houses and 400 plus villas to choose from in Kolkata. From low budget affordable villas to lavish 5-30 crore spacious units, the city of joy never disappoints her patrons who are eager to invest in real estate. High demand for rental flats among the migrants, stronger foreign currencies against INR and plunging property prices in the city calls for more abroad investments.

Implementation of cutting edge technology in construction of smart homes in India is attracting more and more foreign investors. Witnessing the boom in Indian realty market, the developers are experimenting with modern virtual reality marketing technique to ensure a smooth buying experience for buyers abroad. More and more real estate developers are reaching out to buyers through channelized marketing. The registered and highest rated channel partners help the investors abroad close the best property deals with less hassle involved. The overall congenial growth and development in India has contributed to the boom in realty market and the future of real estate business in India looks promising.

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