Dubai has always been a popular destination for Indians, not just for vacationing and shopping, but for the overall aspirational lifestyle it offers. Due to Dubai’s diverse population and cosmopolitan lifestyle, the city offers its residents and businesses a unique environment enriched with hundreds of cultures and a quality of life and work unrivalled in the Middle East.
I am today seriously wondering whether all the celebrating and self-congratulating developers have indeed got “Exclusive” draft of the policy of land acquisition in Kashmir? Does it include construction facing Dal Lake of Srinagar that is Green Belt? Have they done their business calculations and cost & benefit analysis over there? There are more questions than what the builders could answer at this point of time. But what could be vouchsafed is the fact that all these euphoric overtones are premature. None of the industry voices from the matured sectors with more potential to pull off in the State have displayed this kind of immaturity.
The last few years have witnessed increasing focus on the affordable housing segment.It remains a key segment for the Government towards its mission of ‘housing for all’. To provide further impetus to affordable housing segment, the Government has sanctioned over 81 lakh homes under PMAY Urban scheme with an investment of about 4.83 lakh crore.
A majority government at the Centre is gradually reviving private equity’s confidence in Indian real estate – especially the commercial sector. ANAROCK research indicates that PE players infused USD 580 mn into Indian real estate in the month of June, immediately after Modi 2.0 took charge.
Let’s get straight into this question, which has been a concern among all stakeholders – financial planners, property owners, investors and prospective buyers – over the last few years. And only because real estate, particularly residential, did not yield the same returns as it did during its Golden Era of the early 2000s.
Jhumur Ghosh welcomed the panelists, following which Ravi Sinha questioned the global competitiveness of Indian real estate in the wake of thousands of abandoned projects waiting for the funds, the debt-equity ratio imbalance, lending issues, pre-launches without RERA sanctions, and the developers’ defending the indefensible.
Can Indian real estate bridge the gap between the promise and the performance? Can Indian residential market attract as much investment as its commercial real estate? Will the global funds trust the Indian residential real estate? There are more questions than ever and it is time to settle these question marks over the business of real estate.
Lack of affordability in the larger cities is the primary hurdle to the largest investor base, and property investors are now looking at smaller towns and cities. However, their increasing bullishness on Tier 2 & 3 cities as against their tier 1 counterparts is not just on account of their relatively more affordable property prices, but also because of their better growth prospects.
Further liberalization in FDI policies – 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route (against the previous 49%) – has attracted major global PE funds to double their investments in the Indian retail sector.
Entity-level investment is an efficient strategy to get a firmer foothold in the real estate market. It allows a private equity investment firm to not only deploy its capital but also gain synergetic skills in the real estate marketplace. PE firms invariably look for high levels of corporate governance in a real estate development company before deciding to invest in it at an entity level.