Nitin Agrawal, MD of Swadesh Group talks about the impact of Global Financial Crisis and RERA on India’s Real Estate Market.
With a number of revolutionary changes, the real estate market has undergone a major transition over the past few years. The sudden vanishing of financial credit has had a drastic effect on the infrastructural development projects in realty sector. The government in response to the crisis also took some steps that undoubtedly moderated the impact of this crisis. For instance, foreign borrowing rules for firms in infrastructure and real estate sectors were eased. Next, the implementation of RERA in the real estate sector of India also had a major role to play.
Nitin Agrawal, one of the leading real estate developers based in Bhopal discussed his views on the changes he had witnessed. His son Naman Agrawal, who is a Business Economist, Employment Socialist, Real Estate Consultant wrote an article on his LinkedIn page about the impact of GFC in China’s trade relation.
Enumerating his views on the impact of GFC in real estate markets of developing countries like India, the MD of Bhopal-based Swadesh Group observed that it majorly impacted commercial realty sector in India, and only had a limited impact on residential realty in the country.
According to Mr Agrawal, the fall in price led to quick sales and India’s residential market bounced back sooner than expected. He has thus been attracting increasing capital from investment banks, private equity funds and other financial institutions. He also mentioned that foreign capital has been vying to find avenues to invest in this country’s potential growth after recognizing the structural shift in India’s economic and political landscape.
For the experienced Nitin Agrawal who has a rich experience of several years in residential real estate, the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) showcases the political will of the current regime to promote the ease of doing business and increase transparency in the massive Indian real estate sector. Given that real estate is a major industry across the world, there has been a constant focus in many countries to have more transparency in the sector through regulations and technology to widen its horizons.
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