GOOD TIMES - Better days ahead for NCR
However, a recent research reports suggesting that Delhi NCR is slated to be an investment hotspot has given way to a lot of speculation and predictions about the way this market is going to behave in near future. Anshuman Magazine, chairman and MD, CBRE South Asia Pvt Ltd, says, “The national capital region attracts institutional investors primarily because it has remained a stable investment market which provides significant land opportunities for development. At a time when the country's realty sector has been struggling for alternate avenues of funding-other than traditional banks and financial institutions-private players have been sourcing institutional capital. At such a juncture, permitting REITs and InvITs is expected to act as a key enabler for the capital markets in the NCR, along with the rest of the country, and provide investors with exit options. With Standard & Poor's raising the outlook for India from negative to stable, there is no doubt that global investors will start thronging the domestic market and more so in the NCR as this area has provided good returns on investments in the past.“
Talking about the growth prospects of the NCR, Anil Mithas, CMD, Unnati Fortune Group, avers, “For private equity funds, NCR property market is considered as one of the preferred choices. Delhi NCR real estate has already attracted private equity investment of Rs 80 crore in Q1 2014 and the market is sure to move up by about 50 per cent more in the real estate. And this is going to be a major reviving factor for NCR which has been struggling since some time.“
There is certainly no two way about NCR being an attractive real estate market from the perspective of catering to different segments and price points with enough assets for the buyers and investors to choose from.There has been a healthy demand for office, retail and residential assets which have ensured good ROI for investors. Improved infrastructure also works in the favour of the region that has been witnessing growth on a fast-forward mode since last one decade.
Rohan Sharma, associate director, Research and Real Estate Intelligence Service, JLL India, informs that FDI has already started scouting for project deals. “The availability of diverse assets at different price points and in different geographies al lows for a larger choice for FDI. Small investors, HNIs, FDI, domestic funds are going to look forward to the NCR for investments as this is a thriving market for smaller, retail investors as well. It can be said that the future investments in this area would be largely institutional and retail investors would largely focus only on the residential sector,“ says Sharma.
NCR definitely seems to be better placed with several domestic and international investors thriving to invest in the real estate sector here. This, along with the positive vibes visible in the market, is surely going to aid the growth of the real estate sector in the NCR in the coming year.