Realty India Expo to bring leading Indian developers to the UAE

Realty India Expo, a two-day property exhibition showcasing leading real estate developments in India, will be held in the UAE. Organised by Mindscape Exhibitions, the show will be held at the J.W. Marriot Hotel, Dubai on November 21 and 22, 2014. The property show will bring 78 leading Indian developers under one roof with an exclusive Credai pavilion for Kerala state.

Offering great bargains, special schemes and competitive home loan lending rates for Gulf NRIs, the show offers a platform to investors to choose their dream homes.

The Realty India Expo is being held at a time when the Indian government has relaxed foreign direct investment norms to encourage FDI investment in real estate and the budget has given fiscal sops for affordable housing.

Mindscape Exhibitions has been organizing property shows for the past 20 years across Gulf to bring in leading developers, housing finance companies and banks for regular interaction with prospective buyers besides providing free NRI advisory services on legal, tax and financial advisory services.

The Indian government has recently reduced the minimum floor area to 20,000 sq mt from the earlier 50,000 sq mt for foreign investors planning to invest in Indian real estate. It also brought down the minimum capital requirement to $5 million from $10 million. In case of development of serviced plots, the condition of minimum land of 10 hectares has been completely removed now. The Union government is also holding discussions with various ministries on the need for single window clearance and also about giving infrastructure status to the real estate and housing sector.

Moreover the introduction of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts are expected to provide alternative funding channels to the realty sector.

Consequent upon Indian Prime Minister Narendra Modi's visit to USA and the recent clearing of several infrastructure projects, there has been renewed enthusiasm among foreign investors to invest in India. A number of private equity funds are now in discussion with several Indian developers to forge strategic alliance.

Private equity investment in real estate sector jumped more than two-fold to Rs 8,900 crore till September this year as developers were forced to raise funds from PE firms to meet their capital requirements, according to Cushman & Wakefield report.

PE funds have invested close to Rs 89 billion (Rs 1.5 billion) in the real estate sector until September, more than double the amount invested during the corresponding period in 2013 (Rs 42.7 billion/Rs 0.7 billion). Total number of deals also increased to 46 in the first three quarters of 2014 when compared to 40 in the whole of 2013. In terms of locations, Delhi-NCR, Mumbai and Chennai witnessed increased investments from PE funds during the first three quarters of 2014.

Consequent to corporate real estate transaction closures during the first nine months of the year across the leading seven cities in the country, property consultant CBRE estimates the potential generation of office employment opportunities of over 2,70,000 people. The major demand driver for corporate real estate was predictably the IT/ITeS sector--which absorbed approximately 8 million sq. ft. of office space across the key commercial districts--accounting for nearly 32% of this overall potential employment opportunity.

The 9.3 lakh crore Indian housing finance market has grown at a steady rate of 19 per cent CAGR over the last three years. A number of housing finance companies and property developers are offering competitive lending rates for select projects. Moreover, select nationalized banks have recently waived processing fee, valuation charges and legal expenses for their approved projects.

The National Housing Bank has recently reduced the loan-to-value ratio of upto 90 per cent if such loans are supported by a mortgage guarantee. As a result of this, housing finance companies (HFCs) will now be able to offer up to 90 per cent if the loan is above Rs 20 lakh. This is expected to be a virtual boost for mid-range home buyers while investing in housing.

After a lack lustre first half, home sales across the top six cities in the country are expected to rise 26 per cent in the second half of 2014 compared to a year ago, according to property advisory firm Knight Frank.


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