NRIs, you can earn up to 35% returns on realty in certain areas in India

Apartment buildings are seen in Greater Noida. The realty sector in new towns in India's metropolitan cities will grow very fast in the next five years compared to other locations.

Non-resident Indians can earn around 30-35 per cent return on real estate investments in new locations in metropolitan cities of India, such as Navi Mumbai and Powai, where infrastructure as well as residential and commercial projects are being developed fast, according to the patriarch of the country's real estate.
Dr Niranjan Hiranandani, president of the National Real Estate Development Council and founder and managing director of Hiranandani Constructions, said residential and commercial sectors will be the hottest segment in real estate in the next few years.
"The residential segment is going to grow exponentially fast, maybe 30-35 per cent over the next five years. In addition, affordable segment and rentals are also on the upward trajectory. So, investors will get rental as well as price appreciation in those cities where new locations - both commercial and residential - are being developed," said Dr Hiranandani, who has been ranked among India's 100 richest people with $1.5 billion in assets by Forbes.
"Generally speaking, new towns in metropolitan cities like Navi Mumbai will grow very fast in the next five years compared to other locations. There are other sectors that are going to grow such as infrastructure and logistics, but as far as we are concerned, smaller investors will more invest in to residential real estate," he said during a media gathering in Dubai on Saturday.
Dr Hiranandani pointed out that in matured locations, where 100 per cent development work is done, investors will not get that much appreciation on their investments.
But new locations where there are fresh infrastructure, development new airport, schools and medical centres are going to see huge appreciation. He forecast most of the growth will be in the urban and metropolitan cities of India and peripheral towns of Tier 2 cities. Painting a rosy picture of India's economy and real estate sector, Dr Hiranandani revealed that a real estate investments trust market will open in the next three to four months. "We expect a $1 billion investments from Reits this year," he added.
Oil, not trade war
Replying to a question, Dr Hiranandani ruled out any impact of the China-US trade war on the Indian economy, but warned that rising oil prices could pose a threat to its growth.
"The US-China trade war is unlikely to affect India's economy, but [rather] the oil price because 80 per cent of our oil that we consume is imported. So our problem is not with the trade war. If oil crosses $80 per barrel, I think there will be slowdown in the economy," Dr Hiranandani told Khaleej Times during an interview.
And if crude hits $100 a barrel, that could shave off one per cent from India's GDP growth, he said, adding that the country will benefit from the trade war through its services sectors and increased exports.
Time ripe to invest in Dubai property
Darshan Hiranandani, director at Hiranandani Group of Companies, believes that the time is ripe to start investing in Dubai's real estate and hospitality again as prices are becoming more reasonable.
"I think there are a few points which hint that we should start investing in Dubai property again. VAT will become a part of life in the next six months and oil is also coming back at $80. Dubai property, which had become uncompetitive due to high prices, is becoming attractive again due to a drop in prices," he said.
During an interaction with media in Dubai on Saturday, Hiranandani, who is son of Indian billionaire Dr Niranjan Hiranandani, said that Dubai did become expensive and uncompetitive for hospitality and residential housing, but now that scenario is changing following government's recent initiatives. "Hotels are becoming more reasonable in terms of pricing and residential prices are falling five per annually, making Dubai competitive again," he added.
- waheedabbas@khaleejtimes.com

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