The steady growth of the Indian economy is having a huge influence on the real estate sector of India. Major cities like Delhi NCR, Mumbai, Hyderabad, Chennai, Bangalore, Pune and Kolkata are being influenced by this growth and have given rise to the development of smart cities and gated communities.
With the depreciating rupee and the Indian Government creating a buyer friendly environment, the real estate sector looks promising for the next five years. This can make for an attractive investment proposition for NRI, PIO and OCI investors.
Recently there has been some action in the commercial sector. Mumbai has locked in returns of 12 to 19 per cent per year, Bangalore 11 to 12 per cent and Delhi NCR eight to ten per cent. The Government of India has announced a host of measures to spur the real estate sector, and the Reserve Bank of India has cut the repo rate thrice in less than nine months. This has brought down the yearly rate of home loans from 10.75 per cent to 10.25 per cent.
Currently the market conditions are in favour of overseas investors, there are some good deals with good payment plans and the depreciating rupee provides a favourable exchange rate.
Credits London Economics