In spite of the sluggish economy and the falling value of the
rupee, the real estate sector has been surprisingly expanding its scope of
operations. This is primarily due to the factor that over the last 10 years or
so, the Indian realty sector has consistently channelized the FDI and the NRI
investment pools. In the falling economy the Indian government has resorted to
various reformative reforms for the stakeholders in the recent past.
Earlier this year, keeping in mind the needs of the
residential real estate sector the RBI had reduced the rates for external
commercial borrowing. Following the cue, the World bank has also recently
sanctioned a fund of $100 million for affordable residential properties, that
is to be implemented over the period of the next 5 years. The Indian government
is also contemplating to relax the FDI norms aiming to attract large quantities
of foreign investment in this falling economic situation, to keep the realty
sector afloat.
Currently, with an increase in the demand for residential properties
all over the country, coupled with relaxed norms, favorable regulatory
policies and imminent avenues of funding the real estate sector has its hands
full. The sector looks to be maturing,
consequently indicating growth and opportunities for all its sub sectors.
However, the final outcome is still in question, though the major players in
the sector are hopeful that the real estate market in India will benefit from
the transparency and streamlining of the investments, due to be facilitated by
the ratification of the regulatory bill by the Rajya Sabha.
