Property has always been one of the most lucrative investment, despite some uncertainties now is a good time to invest in Indian property. Here are the reasons why 2017 will be a great year for India property market.
1. The recent highly controversial demonetization initiative will drive growth in the longer run: While the decision to render higher-valuation notes worthless designed to drive cash from the “grey economy” into the mainstream is likely to knock growth temporarily, it will actually drive black money into the “real economy” that will fuel a more sustainable long-term growth.
2. India has shot to the top of the list of preferred destinations for real-estate investment in the eyes of major institutional investors.
· Blackstone, the world’s biggest private-asset investor, had avoided India in the past, but is now the most prolific investor in Indian commercial real estate. According to the Times of India, they may also be preparing to list an Indian REIT domestically.
· India’s performance is encouraging Chinese conglomerates to invest. Dalian Wanda, huge private Chinese company, plans to invest up to $10 billion into India. Fosun International is said to be prepping a $1 billion investment platform in India. Chinese investors have historically driven up property prices, and this is no exception.
· Bangalore and Mumbai are the top-ranked cities for investment and development prospects, according to the 2017 version of Emerging Trends in Real Estate Asia Pacific, surpassing even Tokyo and Sydney. Investors are now searching for yield, something which India property offers.
3. India is the fastest-growing major economy, set for a very high growth of ~7.0% this year, which is way ahead of China. In addition, India’s fast-growing population has very little household debt, has a maturing financing industry, repeated interest-rate cuts by the central bank, contributing to almost perfect conditions for property purchases in the coming months.