Indian real estate market expected to touch US$ 180 billion by 2020
Sound regulatory environment, increased transparency and accountability as well as the establishment of escrow accounts under the Real Estate (Regulation and Development) Act, coupled with a favourable exchange rate for Non-Resident Indians (NRIs) make investment in Indian real estate a lucrative options against other asset classes, according to Dr Niranjan Hiranandani, President of the National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing and Urban Affairs, Government of India.
“New housing launches across top seven cities in India have increased 27% year-on-year in January-March 2018,” Dr. Hiranandani, who is also the Co-Founder and Managing Director of Hiranandani Group, told the media at a recent press briefing in Dubai.
Recent media reports mention investments by expatriate Indians in Indian real estate having doubled ‑ from US$5 billion in 2014 to US$ 10.2 billion in 2018.
To a large extent, this follows the new regulatory regime which has made Indian real estate more transparent and increased the Indian real estate developers’ accountability in terms of possession deadlines and quality of construction. The recent global currency value fluctuations have made it a sweeter deal for the expatriate Indians, whose purchasing power vis-à-vis the Indian rupee has gone up.
Growth in the Indian real estate market is being driven by the fast rate at which urbanisation is happening. A recent survey mentioned India’s urban population as expected to reach 800 million in the next 30 to 35 years, becoming equal in size to India’s rural population.
“The Indian real estate market is expected to touch US$ 180 billion by 2020. Housing sector is expected to contribute around 11 per cent to India’s GDP by 2020,” added Dr. Hiranandani. Mumbai-headquartered Hiranandani Group is among the leading luxury real estate developers in India.
