Investors regain confidence in Indian real estate sector

Sultan Al Suwaidi, partner, Sumansa Exhibition, Sultan Butti bin Mejren, Director General of Dubai Land Department; Vipul Thakkar and Jaxay Shah at Credai's Indian Property Show. - Supplied photo

With real estate scenario in India on the cusp of a game-changing transformation in the wake of landmark reforms and initiatives by the government, investor confidence is getting steadily restored, property experts from India said.
Vipul Thakkar, Chairman-International Expo Credai, who is heading a delegation of exhibitors and developers to Credai India Property Show, said after surmounting the challenges posed by demonetisation, introduction of Goods and Services Tax, and Real Estate Regulatory Act, the real estate market in India is steadily on a path of rebound.
"It will take another six months to get back a new round of growth. Sentiment are positive and investors are more confident than ever before," Thakkar said on the sidelines of the three-day show which has lined up more than 200 Indian property developers across 14 states and 60 cities at Dubai World Trade Center.
He said the exhibition, featuring thousands of residential and commercial projects, has therefore sparked increased interest among property buyers following recent reforms to promote transparency in the Indian real-estate sector.
Visitors at the show will not only get a chance to closely observe the current trends of Indian property market, but can also register any related grievance at the "Consumer Grievance Redressal Forum" at the venue.
Sultan Butti bin Mejren, Director General of Dubai Land Department, inaugurated the show. Vipul, India's Consul General in Dubai; Dr Arathi Krishna, Deputy Chairman, NRI Forum Karnataka, and Arbaaz Khan, Bollywood actor, producer and Indian Property Show brand ambassador were present along with top Credai officials.
The expo is being held at Halls 7 & 8 from 12noon to 8pm. Admission is free for all visitors with provision for free parking. Besides property retail, visitors can also avail various offers and bargains.
Credai is also hosting Smart India Realty Meet & Awards Ceremony to acknowledge the leading developers and Government Institutions in UAE and India, Banks, Dubai Land Department and UAE Channel partners
Jaxay Shah, President Credai, National, said the time is ripe to invest in real estate keeping in view that the average rate of growth in prices has been more than 20 per cent per annum historically and likely to rise to as high as 30 per cent per annum.
Shah said markets like Mumbai, Pune and Bangalore enjoyed appreciation in prices of around 15 per cent over the past one year.
"There is good news from smaller towns as well. Kochi is witnessing appreciation of more than 25 per cent annually as we speak. On the macro front too, the growth rate of the real estate industry is quite intact. The sector grew at a constant annual growth rate of 19 per cent over the last decade. The contribution of real estate to India's GDP which stands at 6.3 per cent per cent today is projected to increase to nearly 13 per cent by 2025," he said.
Shub Ganguly, senior vice-president, sales, Prestige Group, said going forward, factors like rapid urbanisation, increased migration to cosmopolitan and Tier 1 cities, and the government's focus on infrastructure and affordable housing will give the required impetus and push to the real estate sector. "With transparency, uniformity in the sector, greater accountability and financial discipline for the developer, a uniform tax structure across the country and stable prices in the sector, there cannot be a better time to buy than now."
The Indian property witnessed a wave of optimism following the implementation of Real Estate Regulation and Development Act, 2016 (RERA) and Goods and Services Tax (GST), giving buyers the confidence to invest in an industry that is now more organized. For developers, too, the move ensures a cleansing of dubious elements, giving way to more quality projects and a proper framework to operate on.
"GST is to bring consolidation in the supply chain, promising to facilitate seamless and fast transfer of goods across the country, thus increasing the working capital availability. RERA, on the other hand, has made the realty sector safe for buyers," said Getamber Anand, Chairman & Managing Director - ATS Infrastructure Limited.
"Now all the states and union territories in India will take their property records and registration online. This would ease the documentation process, which usually requires multiple visits to the government offices. Since properties bought by NRI's are highly susceptible to property frauds, by taking property records online, NRI investors would be able to keep track of their property without any hassle," said Anand.
"The optimism on the back of the reforms has infused trust in the sector among NRI realty buyers and we foresee a prolific growth in the industry in the long run," said R. Srividya, General Manager, Indian Property Show. "NRIs, particularly in the UAE, have been steady buyers of Indian real-estate, and the development will give it further boost. We're also seeing an impressive number of developers from across India reaching out to expats, as evident by the turn out at the property show."
The show has on display more than 1000 projects in a first ever-large international exhibition where properties starting from 1.5 million and above are showcased. - issacjohn@khaleejtimes.com