According to a World Bank report, India received USD 79 billion in remittances in 2018 – with a sizeable portion going into real estate. NRI investments into Indian real estate are led Indian expatriates from UAE, USA, UK, and Canada. In terms of Indian cities, Bengaluru, Mumbai, Pune, Hyderabad, Chennai and Delhi-NCR currently attract the lion’s share of NRI investments.
The NRIs from the US, UK, Middle East, South Africa, Canada, Australia, New Zealand, Malaysia, Singapore and Mauritius participated in the survey. They were given a mix of open-ended and close-ended questions to assess their investment choice in the Indian property market. The data was then collated by Track2Realty team to read the mood of the NRIs vis-à-vis their investment choice in the Indian property market.
Various Government-driven policies including ease of doing business in India are attracting both Indian and global companies, squarely benefiting commercial real estate. Big-bang boosters like the start-up revolution and the Make in India and Smart Cities missions have created a very lucrative environment for businesses to work and expand in India.
Singapore investors are betting big on Indian commercial real estate and other new sunshine sectors, including logistics and warehousing. Major Singapore-based private equity firms are funnelling billions of dollars into the country’s real estate sector, particularly in South Indian cities.
As per ANAROCK data, the top 7 cities currently have a total stock of 5.6 lakh delayed housing units worth a whopping INR 4,51,750 crore. These units were launched either in 2013 or before that. Lakhs of buyers across top cities – particularly MMR and NCR – have been left in limbo, leading to inconceivable mental stress and financial pain.
The Indian real estate may not be attracting the best of talent, yet it is still not open to professional practices. Track2Realty survey finds that it is still the employers’ market and employees continue to crib a number of issues, including poorly structured compensation package.
Tech & IT-BPM sector accounted for the largest share at 38%. Flexible workspaces (co-working) has contributed close to 30% of office leasing. The demand for space was not only led for foreign players, but also home-grown operators who are rushing to capture a pie of this space. The absorption by flexi-operators will pick up pace in the wake of developers jumping onto the bandwagon.
Investors are scouting for investment-ready assets in core office locations in Mumbai, Delhi-NCR, Bengaluru and Hyderabad, which together accounted for about 77% of the total leasing in 2018. We foresee higher investor interest for Greenfield projects in southern cities, especially Bengaluru and Hyderabad, which are witnessing pent-up demand in key office corridors.
The Indians think instead of media hyperbole of big measures many of the small but practical measures can go a long way to ensure a house for each family, if not each individual. Some of the suggested measures may not make the government popular, and hence the Indians are not convinced with the promise of housing for all.
Affordable housing was given the much-coveted infrastructure status, and the very definition of affordable housing has been tweaked to accommodate more inventory under this key category. Moreover, the previously highly speculative markets of NCR and MMR have been tamed and are, in fact, leading the thrust of affordable housing today.