Indian property market ranked fifth in investment potential

Indian property market ranked fifth in investment potential

FICCI-Ernst & Young real estate study analyses future prospects

A FICCI-Ernst & Young Real Estate study titled 'Realty Decoded: Investing across borders' calls for the creation of a regulatory body for real estate, grant of infrastructure status to housing, liberal policies with regards to Real Estate MFs and Investment Trusts, modification in FDI norms for early exit and affordable housing and streamlining of the approval process for housing and real estate projects. Released at the International Real Estate Summit 2010, the study reveals that of the nine countries - India, China, USA, UK, Germany, Singapore, UAE, Brazil and Russia - the most economically proactive and stable nations are the countries likely to hold the most significant potential for future realty investment.
Demand driven market recovery
Dr. Amit Mitra, Secretary General, FICCI, says," The recovery in Indian real estate has come primarily on the back of a strong demand for residential real estate led by improved consumer confidence, economic recovery and improved job opportunities. With projections of over 8% growth expected this fiscal, investors are returning to India with greater confidence. The future of Indian real estate would significantly depend on investor friendly policies, clear and transparent regulatory framework for the sector."

Global recovery creates opportunities
"Amid diverse and evolving market dynamics, the speed of globalization and the integration of the global economy - including finance - has continued to make the world more closely connected. As the global economy continues to recover, real estate investors worldwide are poised to take advantage of investment opportunities", according to Ajit Krishnan, Partner & National Leader-Infrastructure Practice, Ernst & Young.

Emerging economies preferred
Emerging market economies, particularly China, Brazil, Russia and India, are currently the world's fastest-growing economies. Collectively, these markets are well on their way to becoming a global economic force to be reckoned with.

India ranks fifth
The FICCI-E&Y study notes that India ranks fifth on account of a strong economic growth and a developing real estate market. With more focus on the regulatory environment, India has the potential to become a favoured investment destination. Even amid cautious market sentiment and the tightening of government policies, China remains attractive as an investment destination primarily due to its impressive economic growth record and favourable demographics. Due to their developed real estate markets and streamlined regulatory environment, developed nations like the US, UK and the Singapore closely follow China on the index.

Real estate quality essential
The efficiency of our businesses and quality of life for our human resources are largely determined by the quality of real estate. Accelerated progress both socially and economically needs an environment conducive to growth, which can be fostered by good real estate practices. If India wishes to stay ahead in the economic race, there is a strong need to improve the regulatory environment to facilitate real estate development.
The study talks about the comparison of regulatory environment across nine geographies which are India, China, USA, UK, Germany, Singapore, UAE, Brazil and Russia.