India a good realty bet is ranked five among nine favoured real estate investment destinations worldwide. Agreat destination for NRIs and Westerners to bet their greenbacks on India?
You bet. A new study by FICCI and Ernst and Young (E&Y) counts India among the top nine countries that are likely to become favoured real estate investment destinations. India ranks fifth on the overall index as it scores best on the country economy development index and real estate market index.
However, it is fairly low on the regulatory front. China leads the pack, followed by the US, the UK, Singapore, India, Germany, Brazil, the UAE and Russia.
The study entitled `Realty Decoded: Investing across borders,' points out that China and India, the two largest emerging economies in the world, have proven far more resilient to the global recession than many developed economies. Europe has particularly struggled to revive from the recession, while the US is gradually recovering.
“The recovery in Indian real estate has come primarily on the back of a strong demand for residential real estate led by improved consumer confidence, economic recovery and improved job opportunities. With projections of over 8 per cent growth expected this fiscal, investors are returning to India with greater confidence. The future of Indian real estate would significantly depend on investor-friendly policies, clear and transparent regulatory framework for the sector,“ Dr Amit Mitra, secretary general, FICCI, said.
The study also makes broad regulatory recommendations for the Indian real estate sector. It calls for the creation of a regulatory body for real estate, grant of infrastructure status to housing, liberal policies with regard to Real Estate MFs and Investment Trusts, modification in FDI norms for early exit and affordable housing and streamlining of the approval process for housing and real estate projects.
It points out that even amid cautious market sentiment and the tightening of government policies, China remains attractive as an investment destination primarily due to its impressive economic growth record and favorable demographics.
The US, the UK and Singapore closely follow China on the index because of their developed real estate markets and streamlined regulatory environment.
The study says that emerging market economies, particularly China, Brazil, Russia and India, are currently the world's fastest-growing economies. Their demographics (a growing urban and working age population) are more favorable for the growth of the economy than those of developed nations, and they are also seen as being more resistant to the economic crisis.
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