Investors are interested in luxury real estate in India
India is a country of contrasts. Here, fantastic palaces border the slums, and the rapidly increasing number of billionaires actually live side by side with people who are forced to sleep under the simplest canopies. Nevertheless, the state’s economy is gradually growing, and new enterprises are opening, which means that the interest in real estate in India will also increase. The demand for houses in the country by foreign investors is already very good, which is why the prices are increasing.
First of all, foreigners are interested in elite real estate for investment. And this is despite the fact that the number of middle-class apartments, which are idle, is huge. However, the greatest demand is observed in the “luxury” segment. There are many reasons for such decisions on the part of investors. Elite buildings have the best location, necessary amenities (which are rare in India), and additional services (for example, concierges and parking lots).
In late 2018, experts noted the cheapening of real estate in India, including in the cost of lost and premium apartments. The reason was obvious – the market was waiting for the announced reduction in the tax on goods and services, which at that time in India was 12%. The government of the country settled all necessary formalities, after which the interest in elite apartments began to gradually recover.
Local experts note that growth of demand for luxury real estate in India is a usual thing. Such buildings are mostly erected in the largest cities of the country. Nowadays, foreign capital is actively coming to the state, and representative offices of the world’s leading companies are being opened, so the elite real estate rental services are in great demand.
Capital inflow to real estate in India continues to grow
However, not only elite real estate lives in India. Demand for objects here is growing in other segments as well. In particular, foreigners have invested $2.6 billion in the industry, which is 31% more than in 2017. According to local media reports, this was facilitated by reforms of local authorities, which facilitated access to India for foreign capital.
In the report of the consulting firm Active Capital said that 84% of investments that were made in the real estate market in India, was in 3 countries. The United States, Singapore and Canada were particularly active. The remaining share was shared by Great Britain, Hong Kong and the UAE. The rest of the states had a very small share.
In terms of investment attractiveness and the injection of foreign capital, India ranks first in the Asia-Pacific region. In addition, it includes Thailand, Vietnam, the Philippines and Indonesia. All these countries combined have failed to attract as much investment in 2018 as India has. Analysts note that over the past 6 years, there has been a growth of investment activity in the country by 600%.
The government authorities have made serious efforts to achieve this effect. First of all, they have reduced the tax on goods and services, as well as developed new norms in the real estate sector, softer for foreigners. The secondary factors in favor of interest in India were the policy of dismantling and introduction of a simplified system of issuing electronic visas.