THE IPI VIEW
and growing sophistication in capital markets; favourable demographics and attractive investment opportunities in multiple locations, with high yields. Ashwinder Raj Singh, CEO - Residential Services, JLL India is of the view that while investments in India did not offer good returns for a protracted period, the resurgence of the Indian economy after the arrival of a stable government intent on boosting business in the country has caused a change. "Today, the Indian realty market is once again a prime focus area for NRI investors," he says, adding that the Indian realty sector as a whole – namely, across the residential, retail, hospitality and commercial verticals - is slated to grow at 30 per cent over the next decade, attaining a market size of around USD 180 billion by 2020.
"Prime Minister Narendra Modi’s visit to the UAE has been immensely successful in bolstering economic ties between both the countries. " Ravi Ahuja Executive Director, Cushman & Wakefield
"However, the investment opportunity lies less in the Indian real estate sector’s speed of growth than in its overall dynamism," he remarks. "As such, it has been time and again vouchsafed that long-term investments into Indian realty pay off very well indeed as long as sound investment decisions have been taken." Speaking of the advantages that NRIs have, he points out that UAE-based NRIs (by far the largest contingent) "earn in Gulf currencies that have traded strongly against the Indian National Rupee. This factor off-sets a part of the house cost already. However, the rupee is bound to strengthen further, and the advantageous difference between the currencies will reduce as the Indian economy grows under a stable government at the centre." Any which way you look at it, Narendra Modi's promise of India as an attractive investment destination seems to be rooted in reality. There are speed-breakers in the Indian economy, of course, as the new government sets out to meet all the ambitious tasks that it has laid out. Experts agree, however, that the country is moving in the right direction. If Mr Modi's government manages to achieve even half of what it is striving towards today, India will be a very different country a decade from now. Invest early and get a good deal while you can. 10
September 2015
A Vision for Urbanisation In June 2015, the Prime Minister unveiled three big-ticket urban renewal projects – the ` 98,000 crore Smart City, Housing for All and Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Here are some reactions.
“Recent initiatives by the Central Government – Smart Cities, AMRUT, and Housing for all – are welcome steps towards driving economic growth and improving quality of life in urban India. The strong focus on urban infrastructure reflects the Government’s positive intent wherein rapid urbanisation is seen as an opportunity instead of a threat to development. While AMRUT focuses on basic services such as water supply, sewerage, transportation, Smart Cities aim at using technology for better control, transparency and accountability in the delivery of basic infrastructure. The massive interest witnessed from developed nations such as Japan, US, Singapore and France in partnering with India for these missions presents a great opportunity for knowledge transfer and implementation of global best practices. These initiatives therefore, augur well for the India growth story and make it an ideal investment destination. In line with this, Brigade Group, in partnership with a Japanese technology company, has taken up the initiative to develop Bangalore’s first Smart Township called ‘Brigade Orchards,’ a 130-acre integrated enclave which is going to be a model township for how cities will be designed in future.”
Amar Mysore
VP- BCV Developers Pvt Ltd A Joint venture between Brigade Group, Classic and Valmark "The launch of three major urban development initiatives will breathe new life into the infrastructure development of cities and open up a lot of opportunities for the real estate sector. It is forecasted that these initiatives will lay the founding ground for India to become a superpower by the year 2030. These people-centric initiatives will give citizens of modern India the opportunity to contribute to the formulation of development visions of cities. India already has the strong fundamentals and high ratio of young population who can deliver. Policies such as these will enhance the revival of industrial production in the country. Stressing on skill development these programmes will essentially stimulate economic activities. India has already found a spot in the top four fastest growing economies. Many NRIs are interested in investing in the Indian real estate market due to the emotional connect to their home land. The initiatives introduced by the PM will introduce a new momentum to the property trends in the country. The longterm benefits of real estate investment will attract NRI investors. In the past most of the NRI investments were in the residential real estate sector but in recent times they have opened up investment in other sectors of real estate as well. This year is an opportunistic time for NRIs to be involved in the real estate market, since it is offering great investment options in the form of 'smart cities'. The grand plans to develop 100 smart cities with the latest technological innovations will offer impressive returns in the long run. Smart city development will eventually turn out to be the big ticket towards money making opportunity for real estate projects.
Sushil Mantri
Chairman and Managing Director (CMD), Mantri Developers Private Limited. The launch of the Smart City programme comes at a time when the government, private sector and citizens alike are looking at balanced growth, with higher standards of living, created in a resource efficient manner. Such ambitious projects need innovative implementation solutions and adequate capacity at the city administration level. This is a positive step towards building a sustainable and inclusive urbanisation story for India. Defining the right Key Performance Indicators and associated techno-legal reforms will need lot of deliberation. Public-Private Participation (PPP) will be key to implement smart cities. Getting multiple agencies to co-ordiante and move towards a common city vision will be prerequisite to a smart city. The whole agenda of this government around Smart Cities, Make in India, Skill India and Digital India will help create the Future India.
Neel Ratan
Leader - Government and Public Sector, PwC India
www.indiapropertyinsider.in | A
MEDIA PUBLICATION