India is the fifth most-attractive destination for future real estate investments, says a recent joint report by FCCI and Ernst and Young. The list is topped by China, followed by the US, UK and Singapore.
The report was released in New Delhi recently. According to the report, India scores better on the country economy development index and the real estate market index. However, its scores on the regulatory index are low.
The report points out that there is no single clearance system for approval of investment in real estate sector in India. It also said that the approval system is not time-bound and it takes up to two years.
The report says India has the potential to even overtake the Chinese attractiveness provided the government allows real estate investment trust (REIT) and real estate mutual funds (REMF).
According to Dean Hodcroft, E&Y's Head of Real Estate for India, Europe, Middle East and Africa,
while global investors are wary of investing in China since investors are concerned that Beijing can change the policy anytime, India New Delhi should strive to make regulations more investment-friendly.
"India has a strong macro economic story which needs to be supported by some regulatory changes like availability of liquid vehicle for investment such REMFs and REITs," he added.
Hodcroft further says that as many as $200 billion private equity fund is waiting to be invested across the world and India has potential to get the major chunk of it.
The report was released in New Delhi recently. According to the report, India scores better on the country economy development index and the real estate market index. However, its scores on the regulatory index are low.
The report points out that there is no single clearance system for approval of investment in real estate sector in India. It also said that the approval system is not time-bound and it takes up to two years.
The report says India has the potential to even overtake the Chinese attractiveness provided the government allows real estate investment trust (REIT) and real estate mutual funds (REMF).
According to Dean Hodcroft, E&Y's Head of Real Estate for India, Europe, Middle East and Africa,
while global investors are wary of investing in China since investors are concerned that Beijing can change the policy anytime, India New Delhi should strive to make regulations more investment-friendly.
"India has a strong macro economic story which needs to be supported by some regulatory changes like availability of liquid vehicle for investment such REMFs and REITs," he added.
Hodcroft further says that as many as $200 billion private equity fund is waiting to be invested across the world and India has potential to get the major chunk of it.
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