ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Tata Motors to buy Ford India's Sanand factory for Rs 726 crore
  • At NITI meet, PM Modi gives mantra of 3Ts, modernising agriculture to Chief Ministers in big push for 'Atmanirbhar Bharat'
  • Majority of employees want hybrid work, not work from office - An insight
  • Oil slides further amid recession fears, slow recovery in China imports
  • Commonwealth Games schedule India day 11, August 8
Read in App
Business News » India News

Investors convinced of 'certainty of investment returns' in Indian real estate: Experts By Gurdip Singh

Investors are convinced of a strong certainty on returns on their investments from the real estate in India as the positive but disruptive policies have resulted in transparencies, according to industry executives.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Investors convinced of 'certainty of investment returns' in Indian real estate: Experts By Gurdip Singh
The investors meet and delegation visit was organized by FICCI and Enterprise Singapore, a state agency promoting Singapore investors globally. Reuters

Investors are convinced of a strong certainty on returns on their investments from the real estate in India as the positive but disruptive policies have resulted in transparencies, according to industry executives.
Foreign funds, including sovereign and pension funds, are looking at investment in India, following recent investments by Canadian Pension Fund, Qatar-funds, GIC and Temasek of Singapore, said Sanjay Dutt, Chairman of Federation of Indian Chambers of Commerce and Industry Real Estate Committee.

"Now we have the right policies in place," said Dutt, pointing out that developers have track records to show, investors can understand the regulatory and taxation environments, study demand and work out currency risks. Investors can make an informed decision and hedge their dollar to manage currency risks, he said of the system that is being shaped up by the policies such as the Real Estate Regulatory Act and the Goods and Services Tax, among others.

"A lot of investors are now convinced that there is a certainty of investment returns in India and potentially higher returns given the risk of emerging market and certainty has become more stronger because of this ability to make an informed decision," said Dutt, who is leading a FICCI Real Estate delegation in a series of meetings with Singapore-based investors from April 1-3, 2019.

However, India's massive infrastructure development including real estate cannot be funded through internal resources. Foreign investment is required, added Dutt, also the Managing Director and CEO of Tata Realty & Infrastructure Ltd. "After RERA and GST implementation, all developers are working in corporate-style with no delays in delivery of projects. This gives the banks the confidence to extend loans," added Mohit Goel, chief executive of The OMAXE and part of the delegation.

In about three years, when RERA and GST are absolutely streamlined and dealings are made "very transparent", banks will start funding developers' land acquisitions, believes Goel. He sees the real estate industry in a strong position in the coming decade, with 10-12 developers in each of the country's four zones ? north, east, west and south. Over 80 per cent of the real estate industry has consolidated, shaken by the positive but disruptive policies such as RERA and GST, according to Goel.

"The land owners are now approaching developers for a very attractive venture models which make it asset-light for developers," added Getamber Anand, chairman and managing director of ATS Infrastructure Ltd.

"Price of land has rationalised over the last five years because of these disruption and changes by the policies," he said of the industry's biggest challenge in gathering good quality land for commercial, residential and industrial developments. "I see businesses taking off very aggressively. We are in the election year and if we get a very stable government which we are expecting, the business will boom for the next 10 year," he said after addressing investors on "Opportunities in Indian Real Estate" on Monday.

Anand urged foreign investors to partner with the right developer as 100% FDI is allowed in the Indian real estate.

"I would advise funds to do a due diligence on their promoter. More than feasibility of the project, you must see the blood line of the promoter," stressed Anand, also a member of the FICCI delegation. The industry has begun to see serious equity infusion by foreign funds, he said, calling on other institutions to start dialogue with ?the people they think they like to partner with for the next 10 years.

"The next 10 years will be a golden period for anybody who is associated with real estate in India," assured Anand who has spent over three decades in the real estate business.

"The public sector banks are flushed with capital and in a very healthy state. Funds are flushed with capital, but it is only that people are little skeptical about identifying the right partner to deploy money," said Anand. But he called on banks and financial institutions to review their lending rates which varies from 12-15 per cent from Banks and Non-Banking Financing Service companies. "We want it down to a single digit at around 9 per cent," he said of the need to support developers as pace of development accelerates.

The investors meet and delegation visit was organized by FICCI and Enterprise Singapore, a state agency promoting Singapore investors globally.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Indian real estateReal Estate Regulation Act (RERA)
Written By: PTI
Updated: Tue, Apr 02, 2019
03:26 pm
Singapore, PTI
RELATED NEWS
Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60 per cent annual growth: Knight Frank Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60 per cent annual growth: Knight Frank
Mahindra Lifespace to build India's first net-zero housing project in Bengaluru at Rs 500cr cost Mahindra Lifespace to build India's first net-zero housing project in Bengaluru at Rs 500cr cost
Delhi-NCR builders need 73 months to sell unsold housing stock, Bengaluru only 31 months: Report Delhi-NCR builders need 73 months to sell unsold housing stock, Bengaluru only 31 months: Report
Stanza Living raises Rs 425 cr in debt funding led by Kotak Mahindra Bank, RBL Bank Stanza Living raises Rs 425 cr in debt funding led by Kotak Mahindra Bank, RBL Bank
Tier 2 and 3 cities to be growth drivers over the next 2 years; see 'real estate' sector's way forward Tier 2 and 3 cities to be growth drivers over the next 2 years; see 'real estate' sector's way forward

LATEST NEWS

Manappuram Finance, HLE Glasscoat and Balkrishna Industries: Buy, sell or hold—What should investors do?

At NITI meet, PM Modi gives mantra of 3Ts, modernising agriculture to Chief Ministers in big push for 'Atmanirbhar Bharat'

Royal Enfield Hunter 350 launched in India; Check price, variants, details and more

Apple iPhone 14 launch: What to expect - price, specifications, release date and more

Stocks to buy with Anil Singhvi: Sanjiv Bhasin picks Godrej Properties, UPL Limited; Check price target

Sister's Day 2022: Date, Significance, WhatsApp message, greetings

Coal India dividend 2022: Check record date, amount and payment date

This Vijay Kedia chemical stock declines around 9% intraday on weak Q1 performance – Brokerages say this

Odisha CHSE 12 Arts Exam Result 2022 to be declared today; Check result time and direct link to download scorecard

Rakesh Jhunjhunwala stock: Brokerages bullish on this Tata Group stock; upgrade counter, raise target prices

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV