As India rises to greater prominence on the world map, global corporates are more eager than ever to participate in the country’s growth story. A GDP growth rate of 7 per cent plus, a population base of over 1.2 billion and an urbanisation rate northward of 30 per cent are irresistible investment magnets, and real estate development remains a key focus area.
From bad loans to loan defaulters to financial frauds and embezzlement, the Indian banking system seems to be in a crisis mode. And, needless to say, it will have a cascading effect on most sectors – including real estate.
We often hear of banks auctioning off seized distressed properties, and how such properties can be lucrative investments as they come at very attractive prices. Studying the market of distressed properties is not easy, but there are some areas of predictability.
DeMo, RERA and GST struck at the very heart of the previously unregulated practices prevalent in the Indian real estate. RERA, in particular, has been responsible for smaller and often unscrupulous developers taking a major hit not only in terms of existing business but future business viability.