What NRI's Can Look Forward in 2020 in Indian Real Estate
Jan 13, 2020 Real Estate News
In terms of opportunities and sales, 2019 has been a year that has garnered mixed interest from the buyers. The prices of the properties have been stagnant, and with the country’s GDP falling to 4.5 percent, lowest in last six years, the buyers have been on the fence regarding their decision to buy the property or not.
However, some sectors of the real estate did show an improvement in sales. Around 40 percent of 230,000 affordable residential segments were sold last year. The second-highest share goes to the mid-segment with about 33 percent sales. The luxury and ultra-luxury, however, showed 10 percent overall sales in the real estate sector. The overall estimation of sales of units in real estate sector is 258,000. The home buyers mostly preferred new launches.
In 2019, the government announced the help of Rs 250 crore to the projects that are stuck mid-way due to non- availability of the funds. This has brought cheer among the buyers whose projects have been stuck for long or the builders have filed for insolvency leaving the buyers in a bad financial position.
What NRIs can expect in 2020?
The real estate sector of the country has been progressing towards more transparency and stricter laws to make sure that the homebuyers are given precisely what they have paid for. With RERA in place now, the homebuyers have a place to address their grievances which will be resolved as soon as possible.
The commercial sector of the real estate has been a driving force for investment for foreign investors. It is expected that even in 2020, the commercial sector will be the decision driver in the real estate sector for the NRIs this year as well.
As the prices have been more or less the same, the NRIs can look for investment in the mid-segment and affordable segment, including the commercial sector. The rupee’s continuous arbitrage adds to the value of the proposition for the Gulf-based NRIs.
The Alternative Investment Fund (AIF) of Rs 250 crore will ensure the completion of the projects that have been stuck mid-way. NRIs can take the opportunity to invest in such projects.
The ongoing liquidity crisis in the real estate sector will only prove that the strongest and the fair developer can survive and come to the top. This also reduces the risk of investment as only the best, and the financially secure developer will last this wave.
It is expected that the first half of the year for the real estate will still be slow, but the growth can be expected in the second half of the year. The prices will remain stagnant with new policies and rate reduction by the banks. The major segments for investment will be the affordable segment, co-working or co-living spaces, warehouses and offices.
However, some sectors of the real estate did show an improvement in sales. Around 40 percent of 230,000 affordable residential segments were sold last year. The second-highest share goes to the mid-segment with about 33 percent sales. The luxury and ultra-luxury, however, showed 10 percent overall sales in the real estate sector. The overall estimation of sales of units in real estate sector is 258,000. The home buyers mostly preferred new launches.
In 2019, the government announced the help of Rs 250 crore to the projects that are stuck mid-way due to non- availability of the funds. This has brought cheer among the buyers whose projects have been stuck for long or the builders have filed for insolvency leaving the buyers in a bad financial position.
What NRIs can expect in 2020?
The real estate sector of the country has been progressing towards more transparency and stricter laws to make sure that the homebuyers are given precisely what they have paid for. With RERA in place now, the homebuyers have a place to address their grievances which will be resolved as soon as possible.
The commercial sector of the real estate has been a driving force for investment for foreign investors. It is expected that even in 2020, the commercial sector will be the decision driver in the real estate sector for the NRIs this year as well.
As the prices have been more or less the same, the NRIs can look for investment in the mid-segment and affordable segment, including the commercial sector. The rupee’s continuous arbitrage adds to the value of the proposition for the Gulf-based NRIs.
The Alternative Investment Fund (AIF) of Rs 250 crore will ensure the completion of the projects that have been stuck mid-way. NRIs can take the opportunity to invest in such projects.
The ongoing liquidity crisis in the real estate sector will only prove that the strongest and the fair developer can survive and come to the top. This also reduces the risk of investment as only the best, and the financially secure developer will last this wave.
It is expected that the first half of the year for the real estate will still be slow, but the growth can be expected in the second half of the year. The prices will remain stagnant with new policies and rate reduction by the banks. The major segments for investment will be the affordable segment, co-working or co-living spaces, warehouses and offices.
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