Mumbai, as a matter of fact, demands rental housing to be promoted as the feasibility of such an option provides a broad choice of homes to both the investors as well as the expat professionals. The recent economic turmoil also underscored the many advantages of renting and raised the barriers to home ownership, sparking a surge in demand that has buoyed rental markets across the MMR.
With real estate giving better ROI than any other investment vehicle in the country the investors in the India are today exposed to what is happening in the global market. The investors are hence curious to explore what has been tried and tested format in other matured markets – crowdfunding.
The major demographic profile of the NRIs is from the states of Gujarat, Kerala, Punjab and other parts of North and South India. Going by what the traditional investment pattern of the Indians, the cities that should draw the maximum NRI investment should be Kochi, Ahmedabad and Chandigarh. But then it is the Mumbai city that has over the years commanded the maximum premium from the NRIs.
Crowdfunding is the financial modelling of funding a project or venture by raising monetary contributions from a large number of people. However, this model needs three parties to take shape as a business model– the developer who proposes his project/idea to the crowd, people who support the idea with financial contribution and a moderating organisation that brings the parties together to take it on ground.
The supply of quality housing even today is confined to eight key cities. It is not that the new cities are not coming up, but neither the investors nor even the end users want to buy a house in Tier II cities today. The dream and aspiration is always Delhi, Mumbai, Bangalore, Pune kind of life.
Las Vegas, London and also Ghaziabad in the same league! Believe it or not but the western hinterland of Uttar Pradesh was chosen to be having the potential to be among the 10 most dynamic cities of the world. A Newsweek survey, which put the city on the global map, said so as early as in 2006, but since then it seems the city has weathered many challenges in its quest for glory and fame as an urban metropolis city.
Buyers today wish to be part of the construction process. The question is to what extent it is feasible to bridge the trust deficit in the sector by involving the buyer. For example, a developer with plans of multi-city villa project has asked the home buyers to customize their requirements themselves on the developer’s website. The idea is to get the feedback of the end users’ needs and aspirations.
Bottom Line: An equal opportunity market is a wishful thinking…
News Point: Ivanhoé Cambridge to allocate an initial US$250m. PEL…
Bottom Line: Track2Realty estimates that wealthy Indians would be attracted…