(MENAFN - Khaleej Times) Under an investor-friendly modi government the realty sector is expected to attract an increased inflow of foreign investments after a period of decline.
the bullish outlook for a stable government in new delhi in the wake of an overwhelming mandate won by india’s prime minister designate narendra modi is expected to help revive the country’s property market after a prolonged period of sluggish growth a leading developer said on thursday.
under the new bjp-led nda government india’s property sector is poised to witness a new boom cycle driven by upbeat investor sentiments and brighter prospects of increased foreign direct investment flow said y. rajeev reddy founder chairman and managing director of country club india ltd an entertainment and leisure infrastructure conglomerate and developer.
“given narendra modi’s track record for pragmatism and quick decision-making style of governance asia’s third-largest economy is seeing a rebound in economic growth and business confidence. this will have positive implications on the property market that has been in the doldrums for the past three years” reddy said at the launch of osadia garden city a luxurious housing project located in the green community of bangalore.
under an investor-friendly modi government the realty sector is expected to attract an increased inflow of foreign investments after a period of decline.
according to department of industrial policy and promotion data fdi into the construction sector — townships housing and built-up infrastructure — declined to about 1 billion in april 2013 to february 2014 from 3.1 billion in april 2011 to march 2012. from april 2000 to february 2014 a cumulative fdi of 23.1 billion has come into the realty sector 11 per cent of total inflows.
reddy said property prices which have remained almost stable over the past few months are likely to remain at the current level for some time before a widely expected upswing the new regime would trigger by implementing some of the long-awaited reforms and investor friendly regulations.
“for buyers this is the right time to invest. developers are hoping that the new government would hasten the pace of granting approvals to projects and also get the real estate regulation and development bill passed” said reddy.
he said the new government is expected to facilitate quicker land acquisition faster approvals easy and low cost funding availability and better infrastructure to ensure fast-track developments across all real estate sectors.
reddy said construction work for his bangalore project valued at rs2.5 billion would commence soon and is scheduled to open in 2017.
specifically targeting the non-resident indian segment this residential project with contemporary features has been designed to offer them facilities and amenities similar to those they experience abroad he said. key features include apartments with massive lung space to promote healthy living; finest contemporary architectural design; conformance to international safety standards; easy access to entertainment spots it hubs and educational institutions.
“osadia garden city will offer indian expatriates living in the uae and the gulf a unique opportunity to select a place back home at a time the real estate is becoming one of the most lucrative investment options for nris. moreover real estate in bangalore for a variety of reasons represents an excellent destination for nris wanting to park their investment and see it grow” said reddy.
a recent report on real estate and construction indicated that india is reinforcing its stature not only as one of the leading investors in the uae realty market but also as a country that offers diverse realty offerings to investors based in the middle east.
“with definitive pick up in the economy moderate climate good labour relations excellent education and research institutions advanced infrastructure a progressive state policy and a positive investor perception; investment in properties in bangalore would hence be an ideal option” said reddy
osadia garden city marks reddy’s come back as a developer several years after pioneering the real estate business in hyderabad under the name amrutha estates. prices of amrutha residential units have appreciated more than ten-fold over the past 15 years he said.