India’s Realty Sector Is Booming Once Again

Posted: August 21, 2014 in Corporate Lawyers
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The real estate of India is booming once gain and budget was the turning point in this growth. The raising deduction against interest payment on home loan from Rs 1.5 lakh to Rs 2.0 lakhs is expected to propel demand from the middle class for homes in Tier II and III cities. In addition, induction of much needed foreign investment in the sector with the introduction of REITs will give relief to developers, who are struggling with 20%-plus financing cost. Moreover, the allocation of over Rs 7,000 crore towards the development of 100 smart cities by the Finance Minister in the union budget, concessions on housing loans and increase in allocation under rural housing are some of the positive factors which contributed immensely in the fresh growth of India’s realty sector.  Against this backdrop, financiers are anticipating 20% growth in the home loans business this year over the last fiscal.
http://supremecourtlawyeropinion.blogspot.in/“There are no signs of stress in the sector so far. figures show that the loan growth to commercial real estate has been strong and robust mirroring other segments. Retail housing loans have grown at a compounded annual growth rate of 15.6% to more than Rs.5.36 trillion in March 2014 from Rs.2.95 trillion in March 2009 while loans to commercial real estate have increased to Rs.9.07 trillion in March 2014 from Rs.4.58 trillion in March 2009.” – S.S. Mundra – Deputy Governor, Reserve Bank of India.
Both HDFC and Sundaram BNP Paribas Home Finance witnessed a growth of 23% and 15% respectively in the growth in the retail home loan book during the first quarter of 2014-15. The Indian property industry is one of the quickest growing marketplaces on the globe which is predicted to touch US$ 180 billion dollars by 2020 with regards to industry size and in this growth NCR has been able to attract significant investment from MNCs, Big corporate, foreign investors and NRIs. Delhi & NCR is an investor-friendly region with good infrastructure and harmonious industrial relations.
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