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developers, india, Indian, Indian developers, Indian real estate, Indian realty, Investment, Real estate, real estate business
Rapid urbanization and commercial development in India has enticed the developers to experiment with scope of business in recent past. These experiments have been in types of construction, sources of investments, marketing/sales strategy and targeting new markets. The weakened INR has also encouraged developers to target NRI buyers to monetize their investments in a sluggish economy.
The latest venture of Indian real estate is to foray in international market. The weakening of INR has pushed investment quantum from FDI and NRI sources. Therefore, depreciated rupee is augmenting return on investments as investments in foreign currency fetches more worth in terms of value. More number of real estate expos has started being conducted in India. These expos facilitate a convenient podium for FDI and NRI sources to get acquainted with Indian buyers and the preferred buying trends. Adding on to the spree of expos in India, Indian developers have also started going to the actual destination of investment origination. A similar instance can be cited to as the India Homes Fair in London which has been happening for a few years now.
The expanding sub-sectors of real estate in India along with multiplying commercial trade have reckoned the Indian realty market to be ripe for foreign investments. Developers have been monetizing on investments from abroad over the sentiment of inclination for homeland. With maturity in realty sector and the regulatory bill’s introduction in parliament, the sentiments of foreign investors have strengthened. Also the cheaper labor and globalizing Indian economy has boosted confidence of overseas investors.
The new RBI regulation proposes to introduce a new category of external commercial borrowings specifically for the residential real estate. It is expected to attract lower rate of interests when compared to the interest levied of borrowing for commercial realty. With these favorable regulations from the central bank, the expos abroad have also been employed to nurture the investments through borrowing. Interface with financing institutions has considerably benefited Indian developers in order to embolden their brand recognition in foreign land.
Such expos have been happening in Mid-Eastern countries along with others in Europe and America. However, in present day, owing to recent liquidity crunch in Indian economy, the expos have garnered critical investments for the growth of Indian realty. It has been a fruitful venture for all the stakeholders in Indian real estate. The developers have been receiving demands of residential and commercial properties in otherwise a slow Indian market. At the same time the NRIs have been benefitted with cheaper realty assets back home. Though the depreciated INR and consequent interest of NRIs has a temporary hold, it has given much needed relief to Indian real estate business. With growing recognition of native real estate in international market, the future holds a promising trend for investments to continue for further growth in this sector.