The real estate industry of India was going in a downward trend for the last few years and suddenly, in the last year or so, the demand seems to have picked up.
To increase the amount of overseas investing in the real estate sector, the government has even relaxed some of the rules of FDI in real estate so that foreign investors can withdraw and take back their investments easily.
The government has relaxed the area restriction of floor area of 20,000 square meters in development projects and removed the minimum requirement of capitalization of $5,000,000 that had to be brought in the first six months of commencement of business.
With the mood of the real estate sector in the upswing, it is definitely a good choice for foreign buyers to invest in Indian real estate. With the relaxation in norms, steps are being taken by the government to make the process of purchase of houses more transparent. This has lifted the veil that used to surround the builders that prompted normal middle class families to forgo looking a real estate as a viable investment opportunity.
We can look at the following points that prove that there are investment opportunities for foreign buyers in Indian real estate:
1. Investment not as risky as before
Investment opportunities for foreign buyers in Indian real estate have increased with the government making rapid strides to make the purchase of property really safe and transparent. A foreign buyer still has to do the due diligence and the financial math’s to see if it is worthwhile to invest in any one typical project, but the overall signs look good.
2. Does not require a lot of attention
Unlike any other investment, investing in real estate does not require you to complete get immersed in the workings of the industry so that your investment does not go to waste. It is necessary that you check in on the progress of the construction from time to time, but since it does not require a foreign investor’s continuous attention, it is worth avenue for investing.
3. India's economy is improving
India is supposed to be the next big economic superpower in the times to come. The overall economic scenario of the country is stable and improving with a huge impetus in the real estate sector. Besides relaxation in FDI norms, the government is also making rapid strides to make housing affordable for everyone.
4. Low Rates
Because of the slump in the last few years, the prices of real estate in the key markets have gone down in a big way which is an ideal scenario for Investment opportunities for foreign buyers in Indian real estate.
The infrastructure of the whole nation of India is improving in leaps and bounds. This enables a buyer to purchase a land a little far off from the heart of the city, even if they have to commute to work. This was not the case earlier, when the infrastructure and roads of the country were not as developed to facilitate q quick commute and make the experience easier for the buyer.
About the author: Anisha Ambrose writes about property and real estate in India. She has worked at the NeedaProperty.in company for one year as a marketing manager. She likes to share her experience with those who are interested in property market! Waiting for your reply!