The Hottest Countries for Real Estate Investment in 2015

The Global real estate market has evolved big time in the last few years and the investors are now increasingly investing in emerging economies like India. Even though the rating agencies world over have given preference to developed nations like United States, Australia, France, Hong Kong, Singapore, England and the United Arab Emirates ahead of India, the nonresident Indians and institutional investors world over believe otherwise. And their belief does make a lot of financial sense.

The Indian property market is among the fastest growing sector in world realty and as a result the country has emerged as the hottest destination for realty investments in 2015. Here are the important reasons for renowned interest in Indian real estate industry –

• Lower prices

Barring few places in Delhi, Noida, Mumbai and luxury flats in Gurgaon, the realty prices in India are much lower as compared to the world’s average. This basically means that the investors from across the world have greater chance for price appreciation with lower input costs. Additionally, the evolution of multitude of online real estate portals has meant that people sitting abroad can now purchase property in India without actually having to do personal on-site visit. These portals features lakhs of verified realty listings and the users can get complete details of all properties/projects from the comfort of their home or on mobile apps.

• Rupee factor

The value of rupee is the other big reason why people from across the globe are aggressively investing in Indian realty market. The value of 1 USD is equal to nearly 64 rupees, while 1 Australian dollar is nearly 50 rupees and the Singapore dollar is not far behind valuing approximately 48 rupees. This means that people spending in foreign currency to buy flats in India will have to invest a lower sum.

• Favorable norms for foreign investors

The other big factor for India emerging as the hottest country for property investments in 2015 is the favorable foreign direct investment (FDI) norms. The Modi government has brought in several reform measures to relax FDI rules in construction sector. The central government has also eased the entry and exist norms which has led to a flurry of offshore money in the country. Its trending FDI in realty sector!

• High demand for residential housing

The expected price appreciation is also one of the critical reasons why the country is attracting lot of investment in infrastructure domain. The realty prices across the country have appreciated more than 200% in the last 10 to 12 years. And looking at the current growth rate, most analysts believe that the prices in construction segment including residential, commercial, industrial as well as hospitality segment, will appreciate annually at the rate of 12% to 14% in the coming few decades. The government reform measures such as building 100 smart cities, housing for all by 2022, constructing new highways, roads, rail tracks, ports and airports will go a long way in complementing the growth. In fact, as per the recent news, the market size of Indian real estate is all set to touch 180 billion USD by 2020.

This is a guest post by Rajveer Das