India real estate investors see opportunities in Modi reforms

Source: Nikkei Asian Review , Date: Feb 26, 2018.

But cities need adequate sewage and other infrastructure to support
expansion.
Helping foreign real estate investors is not Indian Prime Minister Narendra
Modi’s top priority.

Helping foreign real estate investors is not Indian Prime Minister Narendra
Modi’s top priority, especially when he is preparing for the parliamentary
election due next year.
But even though his policies are now focused on poorer voters — especially on
people living in India’s myriad villages — his government has presided over the sort of sustained economic growth that attracts property investors and pushed through reforms that have considerably benefited the sector.

Private equity and debt investments in India’s real estate in the year 2017 grew 12% year-on- year to $4.18 billion across 79 transactions compared with $3.73 billion across 138 deals in 2016.

The real estate industry previously suffered from having a reputation as a
repository for black money. The reforms have helped it improve its standing.
For example, demonetisation, which involved the dramatic cancellation of
high-denomination bank notes, has assisted in sucking undocumented cash
flows, including wads of money in suitcases, out of the market. The new
regulation act has helped improved transparency and protected property
buyers’s interests by ensuring that developers meet stipulated compliance
standards and conditions, for example for accurate measurement of actual
living space and quality of construction. Meanwhile, the GST simplifies the
multiple taxation system previously that included VAT and service tax that
varied from state to state.

In a further signal to investors, the national government recently approved
100% foreign direct investment in real estate broking services and
construction to promote ease of doing business and attract more global
investors. This, in turn, would help create a real estate market with best
practices, better auditing and reporting processes.

https://asia.nikkei.com/Viewpoints/Anthony-Couse/India- real-estate- investors-see- opportunities-in-Modi-reforms

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