NRIs world-over look at India as a key destination to own a property. Billions of dollars every year are spent in Indian real estate by NRIs across the globe. The desire to own a property can be driven by need to have a place for parents, family of their eventual retirement or seeing India as an emerging economic super power and leverage of this investment opportunity.
Over the last 10 years the Indian property market has seen a lot. A major boom with over 30% growth year on year, a stagnancy and eventually a healthy correction of prices. The last four years have been particularly important in the history of Indian property market as tremendous effort has been placed to bring transparency and structure to this sector. Industry consolidation, new legislation, joint ventures and evolution of innovative product segments to create differentiation has been the key elements in play.
“A series of positive changes in Indian real estate industry are bound to encourage even more investment from NRIs into the Indian property market,” says Vishal Gupta, CEO, Sumo Global, and adds that understanding that time is ideal to take position in Indian property sector with commercial real estate already showing tremendous signs of growth, India Events and Dhanush are bringing an amazing opportunity for Melbourne NRIS.
On 28 and 29 May, Melbourne will witness the largest ever Indian property show at the Radisson on Flagstaff Gardens. This event will showcase over 100 projects by 12 developers from Delhi NCR, Maharashtra, Karnataka, Punjab, Gujarat, Tamil Nadu, Goa, Uttar Pradesh, Kerala and Hyderabad, with exclusive deals on offer for the Indian community in Melbourne.
The event, for which entry is free, will feature top developers from India such as Godrej Properties, Tata Housing, Mantri, Ajmera Realty, Amanora, World Trade Centre, Prestige Group, Mahindra Lifespaces, Sobha Developers, Radius and Ansal Housing. Ozone Group, one of the fastest growing developer from South India is going to be the platinum partner at the event.
People can also meet experts on Indian home loans, use of equity for investing in India, Indian and Australian tax regime, SMSF and repatriation.
For a client’s perspective, the introduction of the Real Estate Regulatory Bill will bring in a major relief to the NRI investor. This regulation will require more disclosure from developers and penalizes them for failing to do so or attempting to change the terms of contracts that have been agreed upon. Developers currently pre-sell homes to buyers at lower prices before obtaining approvals, to fund land acquisitions and generate money to complete other projects. With the new law, they will be allowed to sell only after getting all approvals, and have to use 70% of the proceeds to finish the project. That will restrict their ability to divert funds to other unfinished development and crimp cash flows.
Current government in India has increased budgetary allocations and announced administrative measures to expedite the growth of infrastructure, which in turn will boost the real estate sector.
“NRIs world-wide are making optimum use of the current market conditions in Indian property sector to get the best deals from the developers. Showcasing the best developers from India, Melbourne NRI community is up for a substantial value offering,” says Gupta.