The real estate market is booming day by day than ever. People show a particular kind of interest in dumping their money in real estate. Though there are several options for investment, property stays as their first preference. As it is flourishing every day, more investors are coming forward to find their fortune in real estate to obtain capital profit and regular cash flow.
As per a recent report released by Price Waterhouse Coopers (PwC) Pvt Ltd, India is favored among other nations in the Asia Pacific in the real estate market. Keeping in view of India’s track record with an almost consistent economy, which is not much affected by the global market fluctuations, most of the foreign investors find it lucrative to bank their money in real estate sector. Strong growth, reform push, stable currency etc. too add up to the story.
In just last one year, overseas fund has amounted around 50% of total investment in India. Year after year, the tendency of foreigners to invest in Indian economy is escalating. This can be attributed to some of the favorable and liberal measures adopted by the government in the recent past. For example, reducing minimum size of built-up areas in foreign direct investment linked real estate projects to 20000 sq.m from its earlier requirement of 50000 sq.m. This has become an attracting factor for the foreign money to flow into Indian peninsula. A fair knowledge in Foreign Exchange Management Act (FEMA) and Income Tax Act will help Non Resident Indians in taking intelligent decision in making real estate investment, taking into consideration of the laws that affect the respective sector.
There are various benefits attached to investing in real estate like leverage, appreciation, tax benefits and capital growth. When looking at the advantage of renting or buying a flat, many people prefer buying an apartment as it can increase the net profit through appreciation. Like residential area, demand for industrial plots too has increased in the recent past in India. This mentality has been meticulously utilized by many real estate companies like Mona Townships in Mohali, by providing commercial spaces.
The organized real estate scenario in the country helped in attracting more FDI inside. When major economies are displaying a slower growth, India, with its exceptional performance, is perceived as a bright spot, pulls most of the investors into its clutch. Moreover, it is less vulnerable to currency shocks and has adequate foreign reserves. All these factors made foreign investment to flow into India.