“The real estate sector in India has witnessed phenomenal growth in the past decade due to rapid urbanization, increasing levels of income and opening up of the sector to Foreign Direct Investment (FDI),” says Mr. Niranjan Hiranandani Chairman, FICCI Real Estate Committee and MD, Hiranandani Constructions Pvt. Ltd.
India clocks 140% rise in real estate investments – third highest globally. India seems to be at top of real estate investors’ priority list with the country recording the third highest growth in investment volume of over 140% at $5 billion in 2014 compared to 2.1 billion in 2013 – Cushman & Wakefield.
Agreed that the last 2 years have witnessed a bit of a slowdown in the galloping Indian real estate market, but that is a part of every economic cycle. With current government’s progressive economic policies like ‘Make in India’, encouraging FDIs by direct interaction with global business community in various countries, reducing red tape & corruption through a string of legislative measures, India’s economic forecast is bright. A good & vibrant economy works as a catalyst for the real estate industry.
The economic policies of the Modi govt have impressed economists & financial markets as stated by Reuters on 22nd March, 2015.
India’s GDP forecast for 2015 has been revised up significantly from 6.4% to 7.5%. And as China’s growth forecast was revised down from 7.1% in October to just 6.8%, it means that for the first time since 1999 India is projected to grow faster than China stated IMF (Source: The Guardian).
With a population set to overtake that of China by 2028, the potential demand for housing in India is huge. Some sectors of the Indian real estate recorded an unprecedented growth during the decade from 2002 to 2012. Nitin Singhal CEO of RRJ Estates, said, “My parents bought a flat in Gurgaon in Phase 2 in 2002 for 27 lacs. By 2012, it was being priced at 2.30 crore recording an unprecedented growth of more than 800%. This is the magic of Indian real estate”.
“There are many more heartening success stories we hear frequently in the Indian Real Estate context. It gladdens my heart when we hear how our investor clients have made significant capital gains by investing in India through our recommended projects.”
He added further, “Beyond capital gains, there are other reasons as well we have documented that NRIs chose to invest in India. In our existing client survey, we observed that 25% will invest for their close relatives usually parents to give them an upgraded lifestyle. Other 15% invest for their retirement & to maintain a connection with their roots. We actually recommend clients in their middle age to plan for their retirement in India due to the luxury of affordable manpower both for their care & mobility.”
“Encouraged by our network of investors & clients, we have now brought to the Australian NRIs what we promise to be the biggest ‘Indian Property Extravaganza’ in Australian history covering 3 cities – 13th Sept (Melbourne), 20th Sept (Sydney) & 26th Sept (Perth).”
“All the 3 cities are serviced by our dedicated & experienced sales teams present in each city who ensure that you get localised service & best buying experience. While I personally along with my team here look after the Sydney clients, Melbourne team is headed by Mr Kulvinder Bhatia & the Perth team by Mr Ravi Raghupathy who are all focussed on ensuring that our clients get the best investment opportunities according to their budget & best prices through our NRI discount schemes. Our Australian offices are complimented by our own liaison office & associate offices in India. Thus a whole network is at your service.”
Mr. Singhal further said, “A general myth needs to be dispelled that a lot of customers believe that they can get a better price by dealing directly with builders. This is not the case. If this was true, then businesses like us would cease to exist. We, in fact work with the clients to ensure that they get the best prices through our negotiated NRI discounts. Further we ensure that all their paperwork is taken care of right here in Australia while they are sitting in the comfort of their home”.
“A general sense of fear of investing in India prevails in some sectors of the NRI community. They feel that the investments are overseas & beyond their control & may be taken over by unscrupulous mobs, rents may not be paid & day to day management issues will be there. We need to dispel these fears. Investing in India is as safe as investing in Australia provided the investment is made in reputed builder projects which offer gated communities & round the clock security.
In fact, your home in Australia may be more vulnerable to break-ins. Further, day to day management is provided by the corporate bodies in each project which ensure that the common areas are well serviced for a nominal fee. Also most of these projects provide power back up & continuous water supply.
A lot of builders have in-house rental sections which help arrange suitable tenancies for clients. Beyond that, with proper registration of rent deeds & documentation, having problems with tenancies & evictions is a thing of the past.”
“On the taxation front, the scenario is very promising. With the Dual Taxation Treaty between Australia & India, buyers are avoided the hassle of double taxation. Further India offers a great way to save on CGT by reinvesting within 3 years of sale.
“Our team will be there in the Property Show to discuss any issues clients may have.
Also we will hold 2 informative seminar sessions by our experts covering:
1. A guide to the policies & procedures regarding property investment in India & how to avoid the pitfalls
2. How you can unlock your Super & invest in property in India.*
3. Showcase of selected builder project profiles.
Every serious investor is strongly encouraged to attend these seminars which are provided free of cost for the benefit of the NRI community. Please check with us for the timings of these seminars.
For the peace of mind of NRIs, we are the ‘Official Channel Partners’ of all leading builders on a PAN India basis. This gives our clientele the confidence that they are dealing with official representatives of the builders. Further the added benefit that we are covering all geographic regions & communities & thus have projects in almost each major city &/or region.”
On the mode of finance he explained, “There are normally 3 modes of finance. 1. Self Equity: With low interest rate in Australia, we encourage NRIs to tap this mode for investment. 2. SMSF: Our expert can guide you towards use of SMSF* (Info given is purely generic & does not constitute financial advice) 3. NRI Home Loans: We have tie-ups with Axis, HDFC & India Bulls to ensure that you get a fast response.”
The biggest ‘Indian Property Extravaganza’ in Australian history in Sept 2015 will showcase projects from leading builders like DLF, Sobha, Phoenix, Puravankara, Godrej, Provident, Adani, Lodha, Gillco, Sushma, SARE Homes, ILD, Ansal Housing, KG, Aparna plus many more. Clients will be able to interact directly with the builders. Fabulous ‘exclusive to event’ promotional offers & discounts will be on the agenda. Loads of prizes & give-aways will be announced on an hourly basis. So do not miss out!