By Accommodation Times Bureau
Telling afresh the growth story of Indian real estate, while not just communicating the message of the new regulatory regime post implementation of the Real Estate (Regulation and Development) Act, 2016 but also bringing home the advantage of fall in value of rupee vis-à-vis the US Dollar as also the United Arab Emirate Dirham (AED), among other currencies, Dr. Niranjan Hiranandani, National President, National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing and Urban Affairs, Government of India, reached out to the Indian diaspora in the Gulf Cooperation Council (GCC) Countries.
On September 29, Dr. Niranjan Hiranandani, who is also co-founder and MD, Hiranandani Group, addressed a media meet in Dubai, United Arab Emirates (UAE), where he re-told the story of India as a nation where infrastructure growth is on the Indian Government’s priority list; where post RERA and GST, buying a home is a safer and more secure experience and for the Non Resident Indian (NRI), the global currency fluctuation made buying ‘a home, back home’ an, even more, sweeter deal. “Investment by NRIs in Indian property has doubled, from $5 billion in 2014 to $10.2 billion in 2018,” he pointed out.
The message shared by Dr. Niranjan Hiranandani was that rise in Indian real estate deals through 2018 was driven by policy changes and enhanced transparency, and media across not just the UAE but also some of the GCC countries have responded positively, with coverage enabling Hiranandani to reach out to the huge Indian diaspora across the GCC countries. Pointing out that new housing launches across top seven cities in India increased 27 per cent y-o-y in January-March 2018, He added in his interaction with the GCC media that while the Indian real estate market is expected to touch $180 billion by 2020, Housing is expected to contribute around 11 per cent to India’s GDP by 2020. .
“We are seeing a scenario which is a lot like what was seen in 2012,” said. “The percentage of NRI buyers in Indian real estate in the Metro Cities ranges from 8 to 12 per cent. In 2012, when the Indian rupee’s value went down, NRI buyers took advantage of the situation, ending up with almost 25 per cent of total sales in 2012. In 2018, we have RERA providing transparency as regards the transaction and accountability on part of the real estate developer. Digitization and push towards online permissions translate into an advantageous situation for home buyers, especially the NRIs. We expect not just a repeat of 2012, but also increase in numbers of NRIs opting to buy Indian real estate while taking advantage of the currency value fluctuation,” he added.
Growth in the Indian real estate market is being driven by the fast rate at which urbanization is happening. A recent survey mentioned India’s urban population is expected to reach 800 million in the next 30 to 35 years, becoming equal in size to India’s rural population. “Given this, it has become imperative for the Indian Housing Industry to accentuate and rise to the occasion and match the demand,” said Hiranandani.