Real Estate is an investment 'avenue' which brings attractive returns to the discerning investor. Its value multiplies over a period of time and this is one of the reasons why people look to it for investment.

It can be said that the greater the level of transparency in the sector the more it will be attractive to the investors. Speaking of which, India’s Real Estate business is seeing a rise in its transparency levels according to Jones Lang LaSalle Meghraj’s Global Real Estate Transparency Index for 2010. Indian cities are slightly ahead of Chinese counterparts in transparency.

Delhi and Mumbai held the 41st rank in global transparency rankings in a survey of 81 countries, compared with 53 in 2008. The survey is conducted every two years.

The following are the reasons that are driving this transparency:
•    Consistency in enforcing of contracts
•    Better land registry information
•    Availability of title records
•    Presence of demanding international firms in the market and
•    Foreign investment

The Real Estate sector in the country is also recovering. This can be seen from the increasing prices across the country. E.g. Property prices in the national capital region (NCR) have increased by up to 54% during the first three months of this year (2010) due to higher demand, according to a study from realty portal 99acres.com. The southern part of the country is also seeing an increase in prices. Demand for both residential and commercial property is at an all time high in Andhra Pradesh. Commercial property has shown some resilience during the first half of this year (calendar year 2010). Most markets across India have started recording stable rentals, indicating a gradual revival in demand.

An analyst from a brokering firm said, “The Real Estate sector, residential as well as commercial, has been growing rapidly over the last few years. The rising disposable income and increasing number of nuclear families is driving the demand for residential properties…..”  Banks have begun to lend more money to the sector on seeing that it has got back on track. The Reserve Bank of India (RBI) had increased the provisioning requirement for advances to the commercial Real Estate sector, classified as standard assets, from 0.40% to 1%. A study on growth in advances to Real Estate of 22 public sector banks (PSBs) and 10 private sector banks in 2008-09 and 2009-10 reveals that advances to Real Estate from PSBs rose by 15% as against a decline of 0.4% in private banks.

In light of this comes a recent finding: The number of Indians with investible resources in excess of a million dollars rose 51% on the back of a smart recovery in asset prices in 2009, according to the 2010 World Wealth Report by Capgemini and Merrill Lynch Global Wealth Management Ltd. The report also stated that values of other major assets such as Real Estate and gold also increased in the country with prices returning to pre-crisis levels, and in some cases higher than that.

It is not surprising then that Indian expatriates have started investing in their home country in a big way. Increasing job security in Gulf countries coupled with fears of recession in Europe and North America, are prompting NRIs (non-resident Indians) to repatriate their savings to Indian assets, the most favoured being Real Estate, closely followed by equities and high-coupon debt.

News impact on Expat Properties:

Expat Properties brings you the opportunity to own Real Estate in upcoming places in Western and Southern India.

The NRIs’ clear preference for Real Estate over other investment avenues, the increase in value that this sector has seen in 2009 and the growing demand seen in the residential and commercial property sector point to its recovery in India. The country’s economy also has an important role to play in driving up demand in Real Estate and with the Indian economy growing 8.6 % in the first quarter of 2010 and an 8.5 % growth forecast for 2010-2011 by Prime Minister Manmohan Singh, Real Estate in the country would see more investors looking to it for the steady returns that it offers.

There couldn’t be a better time than NOW to take advantage of the Real Estate market.

Call Expat.

For more information visit:

‘Boom time: India sees a big rise in millionaires’, www.livemint.com, The Mint, June-24-2010
‘India real estate recovery well under way’, Propertycommunity.com, June-22-2010
‘Real estate sector on growth track, but full recovery to take more time’, The Financial Express, June-21-2010
‘Indian Realty gets cleaner’, Hindustan Times, June-25-2010
‘PSBs’ advances to real estate up 15%’, The Financial Express, June-24-2010
‘Emerging nations may account for 60% of global economy by 2030’, The Economic Times, June-27-2010
‘NRIs step up investment in India on euro pain’ , The Economic Times, June-11-2010