India and china- top destinations for investment in real estate

In the recent times, the whole world has faced slowdowns and setbacks in many of its industrial sectors, which has affected their entire economy badly. Sectors like real estate, IT, have faced great losses due to the recession period, resulting into the loss of jobs by many people. Countries like US are still under the stage of recovery, but India and china are two countries, which has been the fastest in terms of resilience. Due to an immensely large number of population and high demand, these countries have shown great recovery and have complimented the country’s growth by becoming the most popular market for real estate investment. 

According to a survey done by renowned companies of the world, India and china are preferred as the top most regions for investing in the real estate sector. This is due to the large population and the scope of growth and high demand for development in the countries. A large number of multinationals are setting up their offices in these countries, resulting into high demand for property and land. Increased requirement of residential units, and urbanisation of the areas, has lead to the strengthening of the real estate sector in these countries. 

The boost in the real estate market in India and china is also because of the high GDP growth of these countries. The lavishing salary packages of the people, has also resulted into the development of an urge for luxurious living in the citizens of the country. Real estate property is also considered as the biggest asset for investment, so people also believe in its power of growth and making money out of it. The increasing affordability status of the citizens leads to the instillation of hi-tech props in the houses, adding to the demand of technology approved housing facilities. 

These all factors, club for the reason of India and china, becoming the priorities for real estate investors across the globe. 

Investment in Indian Property Lucrative

India is a rapidly progressing country that recovered much more quickly from the economic slowdown as compared to other established economies of the world. It has emerged as a robust economy and this is why investments in Indian real estate continue to attract NRIs and investors from overseas.

Investments in Indian market are so lucrative because they not only yield higher returns but also give a sense of security. The private sector that boasts of a dynamic and competitive nature has been a key driver for the economic growth of the country. It presents considerable scope for both foreign and NRI investments in the real estate market.

The Foreign Exchange Management Act, 1999 (FEMA) defines NRI as an 'Indian citizen' or a 'Person of Indian Origin' (PIO). It broadly regulates matters related to NRI investments in India- investment in immovable property, foreign exchange, bank deposits, government bonds, investment in shares, units, securities and foreign direct investment.

As far as investments from foreign investors are regarded, they too are found looking for property in India. The only country likely to see stronger growth in the next five years is China much easier for foreigners to purchase property in India than in China. Sources suggest gross domestic product grew by 5% in India last year with higher expectations for the coming year expected.

Foreigners have found that India offers them good value for money with reports suggesting strong price growth in the next few years with an increasing demand for property to buy or rent. The country’s currency is the rupee whose value is generally stable and is linked to a basket of currencies. They believe it is a good idea to maintain a stock of smaller currency and are looking forward to explore property market of India.

Good times ahead the real estate sector

In the recent days, one must have noticed the growth in demand of the small housing properties, due to decease in the family size. Husband and wife, these days, prefer having small families, which again adds to the demand of short houses. This practise has been followed by the people, also because of the increasing cost of the products to be used on daily basis. I can surely say, the demand of bungalows has decreased to a lot, due to the people preferences shifting from the big bungalows to two- three bedroom flats. But with the fading away of the recession and the times of slowdown, purchase of commercial property is again boosting up in the real estate market.

The real estate market is growing with the buyers preferences changing towards the commercial property and people planning to invest more in the commercial real sector. It’s no doubt, that investing in real estate is the best investment a person does for his amazing future. People buy small houses, according to their family needs and try and invest the rest of the money in the production of surplus benefits, by converting the raw cash into assets like property and gold.

Also with the commencement of Olympics in India, this time, real estate sector is expected to take a major jump, towards the growth and demand of the property. Also, the whole structure and look of the capital is getting changed, adding to the demand of the managers and dealers of the real estate market. According to the reports by a real estate consultancy firm, the business of shopping malls and shops at the prime locations of the city and NCR like CP, South- Ex market, Karol Bagh, Noida, Gurgaon, will surely experience the best of the earning times. So, I can say that all people in the real estate sector should make themselves ready for the encashment of the losses faced during the slowdown.