Delhi-NCR draws max­i­mum realty in­vest­ments

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Shob­hit Agar­wal feed­back@livemint.com Shob­hit Agar­wal is man­ag­ing di­rec­tor, cap­i­tal mar­kets and in­ter­na­tional di­rec­tor, JLL In­dia

OTHER POLI­CIES LIKE THE GOODS AND SER­VICES TAX (GST), RERA, BE­NAMI PROP­ERTY ACT ARE AL­READY SHOW­ING POS­I­TIVE EF­FECTS. REITS ARE EX­PECTED TO LAUNCH SOON

In the first half (1H) of 2017, out of the to­tal in­vest­ment of Rs 16,008 crore, the top seven real es­tate mar­kets in In­dia re­ceived an in­vest­ment of more than Rs 13,500 crore.

Among these cities, Delhi-NCR re­ceived the high­est in­vest­ment of over Rs 5,800 crore fol­lowed by Mumbai re­gion at over Rs 3,100 crore and Bengaluru at over Rs 2,100 crore.

Chennai re­ceived al­most Rs 1,700 crore dis­tantly fol­lowed by Pune (Rs 320 crore) and Hy­der­abad (Rs 300 crore).

While the Delhi-NCR re­gion has been the worst af­fected realty mar­ket in the coun­try, it re­ceived 43% of the to­tal pie thanks to im­prove­ment in the in­vest­ment cli­mate and newer poli­cies lead­ing to more trans­parency in this sec­tor.

Com­pared to pre­vi­ous years , this was a record high for the city’s real es­tate mar­ket. Sim­i­larly, Bengaluru saw the high­est first half in­vest­ment com­pared to all pre­vi­ous first halves. Al­ready, 2017 seems to have set a new mile­stone as far as in­vest­ment in­flows into the real es­tate sec­tor are con­cerned.

The to­tal in­vest­ment (in INR cr) in 1H 2017, which stands at more than Rs 16,000 crore is the high­est ever seen in any year’s first half. It has not only ex­ceeded the 1H2007 but also 1H2016.

De­mon­e­ti­za­tion, big bang pol­icy re­forms, eco­nomic and po­lit­i­cal sta­bil­ity, lib­er­al­i­sa­tion of the for­eign do­mes­tic in­vest­ment pol­icy and the re­sul­tant im­prove­ment in the in­vest­ment com­mu­nity’s sen­ti­ment are some of the fac­tors work­ing in In­dian real es­tate’s favour.

Other poli­cies like the goods and ser­vices tax (GST), Real Es­tate Reg­u­la­tory Au­thor­ity (RERA), Be­nami Prop­erty Act are al­ready show­ing pos­i­tive ef­fects. REITs are ex­pected to launch soon. All this is ex­pected to help the sec­tor evolve into a more ma­ture, con­sol­i­dated and highly-trans­par­ent in­dus­try.

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