HYDERABAD: India’s real estate sector, labelled as largely unorganised, will be able to address its image problem with the help of landmark initiatives like Real Estate Regulation Act and Goods and Services Tax, which could usher in the much-needed transparency to the sector. This, according to sector experts, could attract many foreign companies that are keen to invest in the Indian realty market.
Farooq Mahmood, world president of International Real Estate Federation, threw light on how these reforms will bring everlasting changes and streamline the Indian realty sector, turning it into an attractive market for foreign players.
“It might take another three to five years for the realty sector to witness actual change on the ground level post RERA. Although builders and realtors might initially face some challenges due to RERA and GST, in the long run, they will definitely benefit. Already, positive impact is being witnessed in case of foreign investments.
As the sector is set to become transparent, many foreign investors and companies are showing interest in investing and entering the Indian realty market. Many foreign companies are already in discussions with local players to invest in real estate projects in India,” said Mahmood.
According to him, companies from China, West Asian countries, Singapore and Malaysia are showing interest in investing in Indian realty.
“Real estate players across other Asian countries are looking towards India as a potential market, as Indian conditions are close to their domestic market. With long-due reforms becoming a reality, now these foreign players are positive about the Indian realty sector. Initially, they will partner with local players instead of starting out on their own to get adapted to our conditions. This will infuse new investments into the Indian realty sector and also improve standards,” he noted.