Investors in property overseas should keep an eye on India this year as the slowdown witnessed in residential property over the last couple of years shows signs of turning from October due partly to government steps bringing transparency to the real estate market.
CEO of JLL Residential Services, Ashwinder Raj Singh said: ‘India’s residential property market has been going through turbulent times for past few years. However, things are looking up now with changes in the economy and various initiatives announced by the government’
Overall residential sales were down throughout 2015, however the market seems to have turned positively in 2016 with the first quarter showing a healthy increase in sales from the previous quarter total of 39,001 to 42,521. A rise of 9 per cent.
The Real Estate (Regulation & Development) Act implementation by the government is expected to increase confidence in the sector further by protecting property buyers including new safeguards on possession. Mandatory disclosure of projects, including details of the promoter, project, land status, clearances, approvals, etc. would increase the credibility of developers and would protect consumer rights as well.
The government has also introduced progressive schemes such as AMRUT, Smart Cities and ‘Housing for All by 2022’ which are also helping to boost both supply and demand.
The setting up of the Real Estate Regulatory Authority to ensure time-bound delivery of projects and more efficient and transparent dealings with developers has already shown results in the affordable housing area with increased traction witnessed.
In addition the recent budget in India removed blocks on REITs and also provided stimulus to both supply and demand in the residential market.
With India enjoying both low inflation and low interest rates along with a surging economy, growth in the residential property sector is expected to speed up towards the end of the year. So for those contemplating property purchase the time could be right to take advantage of the expected upturn imminent.