The Indian real estate sector has always been perceived by investors across the world as attractive proposition in terms of quality assets across segments. The recent policy changes and reforms have further shaped the perception of global investors on India as these reforms are seen as India’s endeavour to given an image makeover to the real estate business.
This marks Mitsubishi’s entry into the Indian real estate sector and Shriram has been chosen partner for Mitsubishi’s maiden investment. Shriram was earlier chosen partner for first-ever realty investment respectively by TPG, Tata Capital, Walton Street Capital and Starwood Capital.
Welcome to the world of Corporate Social Responsibility (CSR) in the Indian real estate. The ground reality is that the real estate companies today get into CSR for fulfilling mandatory provisions and/or tax adjustments than any real concern for the society.
Ever since I got into the hitherto-untouched & challenging business of brand rating of Indian real estate developers, I only get the reactions in extreme, depending upon whether the developer has been rated high or low. After all, every builder is a God’s gift to the world of brand, as per his own make-belief metrics.
The Indian real estate developers are going over-board in capturing the fantasy of the rich Indians who are also expat professionals. But they seem to have gone completely off target when understanding the long-term housing needs of these Non Resident Indians (NRIs).
Full adoption of blockchain technology in Indian real estate may appear a remote possibility, however, low transparency provides an incentive for adoption of blockchain rather than an obstacle; and we see several near-term applications for the technology.
Nearly all the developers in the Indian real estate are chasing the Non-Resident Indians (NRIs) but very few have succeeded in attracting the investment of expat Indians. Reason: They have tried to hard sell the properties without actually understanding what these fellow Indians living abroad want.
A friendly budget is always on the wish list of everyone. Across the industries the stakeholders, including the consumers, have more or less the same expectations with the Finance Minister to call it a friendly budget. But in the context of the Indian real estate a friendly budget for the sector does not necessarily mean a homebuyer friendly budget.
The more liberalized FDI regime now further attracting global capital flow to Indian real estate sector. The Goods and Services Tax (GST) system will also have a major impact especially in sell to build model in Real Estate. And the Benami Property Act will surely curb the parking of black money in real estate.
One of the most significant trends the Indian real estate sector saw in 2017, was the infrastructure status given to affordable housing. The government’s vision of achieving Housing for All by 2022 appears a lot more achievable, with steps taken like effectively revising the qualifying criteria.