'Home Market Looking Good'

Home Market Looking Good
Rizwan Sajan, Founder and Chairman, Danube Group

With low labour costs, higher return on investment and a strong outlook for sustained economic growth, investors should not doubt the potential of India, says Danube Group Founder

Published: Thu 15 Aug 2019, 11:18 AM

Last updated: Thu 15 Aug 2019, 4:38 PM

Affordability is driving the real estate investment market in India, as the new government pushes for growth reforms in order to enhance the economy. As NRIs continue to search across India's latest developments for a forever home, Danube Group is omnipresent and ready to cater to the demand for building materials.
"Affordability is one area of focus for the overall demographic. The expanding urban infrastructure will help increase mobility across the country and a new urban class is set to emerge who will need homes to live in. This means more construction, more materials and increased demand for home furnishings," said Rizwan Sajan, Founder and Chairman, Danube Group.
Furthermore, Danube Home, which specialises in home décor and furnishings, sees growth potential across India - from North to South and East to West, including upper and lower income groups.
"India is a growing economy and the country has sustained a high growth rate in recent years. As the government is promoting inclusive growth, the country is expected to witness a massive growth in domestic consumption due to the expanding consumer base. This is a very good case for investment, not only for Danube Group, but for all investors," he added.
Sajan said that with the general election over, the new government will continue to push for growth reforms, lending confidence for increased economic growth.
Danube recently set up its first walk-in store in Hyderabad last year, and received positive responses. "It is growing as per our expectations. We are happy with not only the increase in customer footprint, but also increase in sales," he said, adding that it looks forward to open more branches across India and the GCC region in the near future.
To date, Danube stands tall as the first organised supplier of building materials in the UAE, which played a great role in the construction and real estate sectors.
When it comes to the Indian market, Sajan believes there is unlimited growth potential with a rise in consumer base whose buying power continues to increase by the day.
"We have great plans for India. However, Danube is a careful investor; we will invest in a city when we feel comfortable with the socio-economic and political environment, after proper risk assessment and due diligence," he concluded.
Factors to consider before investing in real estate:
- Do due diligence before making any decision. Know the market well. Spend more time in understanding the market and the consumer mind set. What sells well in Dubai might not sell well in Chennai.
- Rate of return on investment is crucial, as it helps investors to gauge the recovery period.
- Local business culture and etiquettes are crucial for success in investing in any economy. Things like the fate of a bounced cheque or local laws on how to deal with non-payment, etc. are important aspects.

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