Investment in India

Scenario of real estate sector in India

The Indian real estate sector has witnessed significant growth in the past few years and is expected to grow at the rate of 30 per cent in the coming years. The sector has emerged as one of the most appealing investment sectors for domestic as well as foreign investors.

The major factors responsible for growth in the sector are increasing purchasing power, favourable demographics, existence of customer friendly banks & housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract real estate investments.

Growth prospects

The Indian real estate market size is expected to touch US$ 180 billion by 2020. In fact, the demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014, with tier I metropolitan cities projected to account for about 40 per cent of this.

Investment opportunities

At present, investment trends in India are showing a huge number of NRIs investing in Indian real estate sector.

India needs to invest US$ 1.2 trillion over the next 20 years to modernise urban infrastructure and keep pace with the growing urbanisation, as per a report released by McKinsey Global Institute (MGI)-India's urban awakening.

Growing infrastructure requirements from sectors such as education, healthcare and tourism are providing numerous opportunities in the sector. Further, India is going to produce an estimated two million new graduates from various Indian universities during the year, creating demand for 100 million square feet of office and industrial space. In addition, presence of a large number of Fortune 500 and other reputed companies will attract more companies to initiate their operational base in India, thus creating more demand for corporate space.

FDI in Indian real estate

Construction development sector (including townships, housing, built-up infrastructure & construction-development projects) has attracted a cumulative foreign direct investment (FDI) worth US$ 22,007.67 million from April 2000 to February 2013, according to the Department of Industrial Policy and Promotion (DIPP).

In addition, the sector is set for robust inflows of US$ 4-5 billion from overseas investors in the next couple of years, with Bangalore, Delhi and Mumbai emerging as the favourites, as per Jones Lang LaSalle, a global real estate consultancy giant.

Government initiatives in the sector

The Government of India (GOI) has allowed FDI up to 100 per cent under the automatic route in townships, housing, built-up infrastructure and construction development projects to increase real estate investment, generate economic activity, create new employment opportunities and add to the available housing stock and built-up infrastructure.

The Reserve Bank of India (RBI) has granted permission to foreign citizens of Indian origin to purchase property in India for residential or commercial purposes. Further, the government is also committed to introducing FDI in multi brand retail, introduce changes in the existing SEZ policy to resurrect developer interest and expand the role of the private sector in infrastructure development.

Tax Advantages

People can avail huge tax benefits on investing in real estate:

• Tax exemption is available on re-investment of sale proceeds of property in eligible possibilities
• Tax benefit is available on interest on housing loan raised in India

Great Investment Options for NRIs for Making Great Profits

If you are an NRI, it is natural that you would like to invest in some of the best agencies, so that the future returns on it are huge. There are several investment options for NRIs currently, but OIFC proves to be the best. Special facilities are often offered to the Non-resident Indian because it is one of the best promotion agencies for investment in India, especially in Gujarat. The investment types available with this organization are many, and therefore, you can carefully and wisely select from them. However, there are some special considerations that you would have to make while making an investment here.

As there are different investment types under this sector, the choice of the type would largely depend on the amount of money that you want to invest and the amount of risk that you are willing to take. Being an NRI, you can always invest in the Indian Stock Market through mutual funds or directly through the equity market. There are Corporate Fixed Deposits, Monthly Income Plans, and even Fixed Maturity Plans. Periodic investments are also a good option in that case. However, if you are absolutely confused in making the right decision, the best thing that you can do in this context is to take the suggestion of the experts in this context.

India being a land of opportunities, you would not have dearth of investment options for NRIs. You would just have to take wise and careful steps, so that you end up making the best deals. The investment options along with this line are generally long term strategies. At different periods of time, you would be able to get different beneficial features with these investment options that can certainly work great for you. However, you can always assess the market and the risk factors involved in such forms of investments, so that after a long time the profit that you earn is visible.

In addition to that, if you want to make a real estate investment, carrying out the transaction through OIFC can be wise. It is believed that carrying out transaction can be often a cumbersome task, because there are several laws and rules in accordance with transaction of property. However, if you take a closed guidance of the OIFC rules, you would definitely be able to carry out investment safely and wisely. In addition to that, you would also have to keep in mind several foreign exchange regulations in relation to acquisitions and transfer.

When you want to make a real estate investment, you should also be aware of the fact that you would be able to invest in shares of companies that are associated with the development of township, or construction development projects. You can also acquire any immovable property within India apart from the agricultural property, farmhouses and plantation properties. If required, being an NRI, you would also be able to transfer these properties to any resident of India. You would also be able to transfer the property to another non-resident Indian, as well. Therefore, there are huge investment opportunities available here for you.

Find out the Most Favorable Investment Option with Proper Investment Advice from Experts

When you earn money, investing in the right place would definitely be one of your primary requirements. There are plenty of good investment options that are available in today’s date, and therefore, it would absolutely not be difficult for you to select the best option that caters to your requirements. However, amidst the huge array of options, if think you are confused in making the right decision you can always look for some investment advice from experienced professionals. OIFC is a good organization that can not only offer you wide opportunities for investment, but the experts would also offer you valuable advice by means of which you can make a profit.

You should always keep in mind that investment in the right place is always the key to make profit and success. However, if you want to earn a long term profit, you can select the investment options from OIFC. There are opportunities not only for the non-resident Indians, but in addition to that, even general people can think of making investments here. You can invest directly through the stock markets, or you can also carry out investment through equity and shares. However, it is essential to assess the conditions of the market and the risk factors involved in the investment. At the same time, you also need to find out the amount of risks that you are willing to undertake on the basis of which it would be easy for you to select the investment options and the profit that you would make.

You can be assured that if you take investment advice from any professional experts, they would inform you well about the existing conditions of the market on the basis of the amount that you want to invest. They would also inform you about the different existing features and benefits of different investment options from where you would definitely be able to reach a conclusion for your investment.

In terms of investment, you can think of small, micro and even medium scale enterprises in the country. The government of India is also making efforts to implement large numbers of schemes and other programs. The rates of interest that you would get with each of these invested amounts would vary on the existing conditions of the market and the prices, along with the schemes on which you have invested. However, you must ensure that you select the right scheme and the right programs to get bigger returns on the amount that you have invested.

Therefore, if you are currently looking out for some good investment options, it is high time that you start thorough research. You should not only acquire information on the existing schemes and options available for you by asking the experts, but in addition to that, you must also determine the conditions of the market. There are plenty of risk factors involved in making any form of investment, and when you feel that you would be able to handle the risks involved, you can start your investment. This in turn, would help you to get good returns in the near future.

Huge NRI Investment in real estate sector in India

The Indian real estate sector has been seeing huge investment from non resident Indians (NRIs) and Overseas Citizens of India (OCIs) who have now started applying online and checking out top ranking brokers to buy homes and properties across India. Real estate organizers are building properties comparable to the rest of the world to cater to the growing demand from overseas Indians. Most of these are premium properties with amenities not seen anywhere else.

Many real estate companies in India are multinationals, and, therefore, are capable of producing replicas of integrated properties found in countries such as the US and UK. Their target clientele are the NRIs and everything is created with their requirement in mind.

Participation of foreign banks
NRI investment in real estate has become more lucrative with major foreign banks in India and financial institutions funding real estate in India. Rise in demand for quality properties for housing and the upswing in the hospitality and hotel industry in India have brought a number of such institutions in direct competition to invest in the real estate sector. There is also a boom in the stock prices of real estate companies.

The Indian Government has relaxed many rules and regulations regarding NRI investment in real estate to attract more investment from this sector. It is also pumping in more money in the real estate sector in India. The government has also updated the property tax act, the rent control system and the land ceiling regulations and made them more investor friendly for NRIs wanting to invest in real estate. There is further liberalization of foreign exchange regulations to get more NRIs into real estate buying, selling and investing.

Government measures
Among the many progressive measures taken by the government to promote demand and investment in the real estate sector are allowing 100% FDI in townships, housing, built-up infrastructure and construction development projects through the automatic route, subject to guidelines as prescribed by DIPP.

It has also allowed 100 per cent FDI under the automatic route in development of Special Economic Zones (SEZ), subject to the provisions of Special Economic Zones Act 2005 and the SEZ Policy of the Department of Commerce.

Returns have also skyrocketed for private equity players who have found an excellent business opportunity in real estate over the last few years. For NRIs it is profitable to invest in real estate and see property prices appreciating over the next two or three years.

According to the data released by the Department of Industrial Policy and Promotion (DIPP), housing and The real estate sector attracted a cumulative foreign direct investment (FDI) worth US$ 9,405 million from April 2000 to January 2011 Compared to US$ 1,048 million during April-January 2010-11. This includes construction of cineplex, multiplex, integrated townships and commercial complexes etc.