Indian retail real estate
This scenario is credited to the Prime Minister of India, Shri Narendra Modi, who had recently clinched a slew of proposals aimed at enhancing foreign investments in the Indian Real Estate.
Since many years, India has been in limelight when it comes to Foreign Direct Investments (FDI). But now it seems that the real estate will see a tremendous growth in the coming 6 years. The proposed idea of promoting investments and de-stressing on construction sector is mainly for:
- Achieving higher growth rates
- Providing employment opportunities
Moreover, the Real Estate Bill passed by the government bodies, is expected to facilitate monetary benefits in the sector.
Though FDI equity inflows in construction declined by 84 percent during the first nine months, the Bill still facilitates FDI in the Indian Real Estate. Not only this, the major aim of presenting FDI will essentially work towards:
- Accountability and responsibility
- Information in the public domain
- Robust transparency in the sector
Thus, the scenario will work well for both, home buyers and the real estate developers too. The bill will help boost the overall image of Indian real estate that will attract Investments Avenue across the world. Thus, the FDI will step forth in the retail real estate with a big bang!
Looking at the scale of ongoing deals in the Indian Real Estate, PE (Private Equity) players’ investments have marked their footprints into the Indian retail segment. In the first 5 months, the Indian retail has cornered about 8 percent of the total Private Equity (PE) investment. Apart from this, there are some major deals in progress, and if any of these go through, then the year will smash a historic shot as far as PE Investments into retail real estate sector are concerned.
Factors that work in favour of retail and real estate are:
- Improvement in the consumer’s tastes
- Liberalisation of the FDI policy
- Political and economic stability
Thus, the new norms will spruce up the Real Estate Sector with the new proposed FDI policy.