The property market in India is fast gaining popularity with Singapore investors, according to developer Keppel Land.
Home prices in India have risen by as much as 40 per cent in recent years. Industry players expect prices to head even higher, as more investors jump on to the India bandwagon.
According to Keppel Land, property values across India have surged some 25 to 40 per cent in the past three to five years, piquing investor interest.
This momentum is expected to continue because non-resident Indians (NRIs) have been looking back home for investment options, Keppel Land said.
"The economic boom in India has rekindled interest for NRIs to look into investing in India," said Ang Wee Gee, Keppel Land's Regional Investment Director.
"The returns that the NRIs can achieve from investing in properties in India is quite attractive too, relative to other countries.
"Another reason why NRIs are buying is because the quality of homes developed in India has improved over the last few years."
Demand for properties in India has traditionally come from the West, but based on the increasing number of inquiries Keppel has been receiving, the developer said regional interest is growing fast.
Some customers here have even tried to purchase units in projects which have yet to be launched.
Apart from home-buyers studying prospects in India, more foreign developers are also heading there, with Keppel Land being one of the first.
"India's real estate market is fundamentally strong," explained Ang. "Demand is strong. We see acute shortage in supply. There is still quite a lot of catching up to do for the Indian real estate market. So as a foreign developer, Keppel Land feels there is an opportunity for us to capitalise."
He also said that India might capitalise on the potential slowdown in the US economy next year.
That, according to Keppel Land, may push NRIs working in the US to return to India.
Returning NRIs will boost demand for homes and also potential earnings for developers.
Keppel Land currently has two projects in Bangalore and one project in Calcutta. - CNA/yb
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