Now Buying 1 BHK Flat in Pune by an NRI Becomes Easy
The government’s decision to relax the FDI norms in the real estate sector is very encouraging as it will reduce the cost of funds for builders significantly and this would translate into lower prices for the end consumers in Pune.
The cabinet on Wednesday relaxed its rules on foreign investment in property, which is expected to give a huge boost to real estate development in the country.
These relaxation in rules are expected to result in more inflows into the real estate industry in Pune, with development of affordable housing and smart cities among the areas of the real estate sector that could stand to benefit the most.
Our government, is aiming to develop 100 smart cities across the country. There are urban housing shortages in India, so it is hoped that the eased rules will help alleviate these housing shortages.
With the government of India having declared affordable housing on par with infrastructure and its commitment to create a business-friendly environment, the Indian real estate sector is all set to blaze new trails of growth. Thus, investments in real estate have high growth potential. Further, non-resident Indians seeking to have their own home in their homeland can benefit from fabulous offers. In short, it is a win-win situation for both the builders and buyers.
Real Estate Development Indicators
• A dynamic and organized sector with a long-term road map for growth.
• Has the distinction of being the second largest employer after agriculture.
• Slated to grow at 30% over the next decade driven by housing, retail, hospitality and commercial – the four pillars of growth.
• Spiraling demand for office space in India’s leading urban and semi-urban centers.
• NRI investment is expected to surge.
• Market size is expected to touch US $ 180 billion by 2020.
• Bengaluru and Pune are some of the most favored property investment destinations for NRIs.
Investor Friendly Environment
• India’s union cabinet relaxed rules for Foreign Direct Investment (FDI) in the construction sector.
• The minimum floor area reduced to 20,000 sq.m. from 50,000 sq m.
• Minimum capital requirement brought down to $5 million from $10 million.
• Securities and Exchange Board of India’s finalization of norms for Real Estate Investment Trusts in India is likely to lead to fund flows into Grade A office space.
• Boost for smart cities – new rules will encourage the development of smaller projects in urban areas, where the availability of land is limited.
• IT/ITeS sector continued to remain the main demand driver for commercial office.
• Rental values for commercial office space remained stable for the most part across cities such as Delhi NCR, Bengaluru, and Pune.
• The government’s mission of ‘Housing for All by 2022’ will be a growth driver of growth in the real estate sector.
• The real estate sector is the growth engine of the Indian economy and the economic contribution of the sector is projected to double by 2025.