India’s Real estate property market news:
The country’s general elections will start next week, arriving on the back of a slow economy,high interest rates and low demand for property. Indeed, India banned overseas property investment last year in an attempt to stabilise the currency.
But while the mood may not be especially confident, the market is expected to return to more positive conditions when the elections – which run until the middle of May – are concluded.
Buyers are thought to have been waiting on the sidelines, holding back to see what the election results are before committing to climbing the housing ladder. That will change, though, when the results are announced, predicts JLL India.
“There is a sense of hope among developers for a positive post-poll scenario,” Ramesh Nair, Chief Operating Officer for Business, tells World Property Channel. “While all eyes are on the general elections, the real estate sector is holding its breath for the potential optimism that is expected once the results are out. This optimism is expected to boost transactions and lift home-buyer sentiment.”
“The next government’s economic and employment policies will be key drivers to growth in the real estate sector for the next five years,” he adds. “2012 and 2013 were not the best years for the Indian realty market, and the slowdown impacted all asset classes, except in a few pockets. Revival is no doubt the need of the hour.
“Over the last few quarters, political uncertainty has significantly weakened buyer confidence in many regions. A decisive win for any of the alliances will uplift home-buyer sentiment and the property market will see a return of buyer demand due to the reinstatement of confidence. Post elections, if the road to recovery is unhindered, property buyers may very well re-enter the market in good numbers.”
Mudassir Zaidi, the national director, residential agency, at Knight Frank India, agrees that a politically stable government could set the property market “galloping again”.
Cypriot residency by investment scheme changed
The requirements for the Cypriot residency by investment scheme have changed, according to Gold News.
The amendments, reportedly announced by the Council of Ministers, concern the discretion of the cabinet to lower criteria regarding investment in government bonds, assets in Cypriot enterprises, in real estate, development and infrastructure projects and regarding the purchase, establishment or participation in Cypriot businesses.
The special cases concern:
I. The amount necessary for foreign investors to secure a Cypriot passport, which is reduced to €2.5 million for someone participating in a collective investment worth at least €12.5 million.
II. The amount necessary for foreign investors to secure a Cypriot passport, which is reduced to €2.0 million for someone participating in a collective investment worth more than €12.5 million. This provision will apply until 1.6.2014.
It is thought that the new criteria will be welcomed by investors from the Far East.
Author – Dan Johnson
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