Delhi-NCR draws maximum realty investments
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.