It does seem that things are changing in the Indian real estate market, as the government seems to have got its act together on the policy front. Property prices in the key Indian cities are rising as investors get back to buying properties again. So now may be the right time to sell your overseas property in India.
Bollywood celebrities are certainly positive about the Indian real estate market as a recent purchase of a Mumbai apartment for $6 million by the Indian actor Ranbir Kapoor proves so well. Suddenly, developers who were struggling to get rid of inventory are finding takers. Lending rates couldn’t have been better either, with banks happy to give loans to those who are serious about investing in Indian properties.
Reeza Karimpanal, who is a Vice-President at Bangalore based real estate company Embassy Property Developments says, “Developers, by being conservative in new launches in the last financial year (ending March 31, 2016), reduced unsold inventory down by about 37 per cent. Sales velocity is about 11 per cent. But the acquisition costs of land remain high, (while) the cost of proposed high specifications also adds to cost of project.”
At this point of time, the real estate industry in India is focused on the bigger picture, and not unduly concerned about the costs. The return of the domestic buyers has certainly helped matters and has taken away some of the debt burden that many real estate developers had been carrying on their books lately.
The government has done its bit as well, passing the real estate regulatory bill back in March, which is one of the most pro-buyer legislations ever passed in India. The new law means that buyers are no longer at the mercy of the developers and have the right to be compensated if the developers delay projects for no good reason.
Swaroop Anish of The Prestige Group, explains what the new Real Estate Bill is likely to do for the property market in India: “The RERA Bill It provides additional comfort to home buyers and regulates the operation and functioning of this business, thus making it more transparent. It will weed out unscrupulous operators and ensure a more pleasant home-buying experience. The benefits of the new enactment will be felt in the years to come as the respective states adopt the Bill.”
Non-resident Indians have stepped up buying activity in India snapping up properties in cities such as Bangalore, Hyderabad and Pune. The amount of interest shown at Indian property shows held in Dubai and other places in the Middle East definitely points out to the fact that the Indian property market is fashionable again.
Rohan Sharma of JLL India, a top real estate consultancy says, “These launches are aimed at the diaspora as well as businessmen, high net worth individuals and celebrities looking at lifestyle living or even investments in luxury projects.”
The action is particularly strong in South India, with Apple planning to set up a research and development centre in Hyderabad, and a lot of new companies coming up in Bangalore and Chennai. Bangalore, in particular, has benefited from the development of new roads and a brand new metro system, which has made the city better connected than before.
Certainly, if you’re looking to sell a house in India, it does seem that things have taken a turn for the better there. As a spokesperson for Tata Housing, a major real estate developer says, “We are now looking at the bottom of the barrel as far as the prices going down are concerned. We believe this is the right time for both consumers and investors to go ahead and buy their dream homes as (interest) rates will start moving northwards with the economy predicted to grow at 7.5 per cent in 2016-17.”