Banglore, Mumbai, Delhi real estate rankings nosedive
Gurgaon and Noida, indicating a flight of capital from the Western and Southern regions to the North in the medium-term.
However, the report paints a rosy picture going forward. It says despite various issues plaguing the sector, there is hope ahead especially after the recent decision to permit foreign investment in multi-brand retail, Mehra said.
"The favourable demographics and inherent but latent demand continue to be redeeming factors. Several micro-markets continue to provide suitable investment opportunities for investors and end-users alike," he said, adding the need of the hour is to deliver focused political and economic reforms.
"While the domestic realty sector may currently be grappling with certain socio-political and economic issues, particularly rising inflation and interest rates, uncertainty on fiscal policies, and subdued interest from opportunistic investors, there appears to be light on the horizon," he says.
From a regulatory standpoint, the introduction of the alternative investment fund (AIF) regime seeks to streamline and regulate the myriad of investment schemes, in a bid to boost investor confidence, he says.
"One area that is yet to be developed is the real estate investment trust (REIT) regulation, which can provide an additional exit route for investors and enable retail money to be channelised into the sector through a regulated network," Mehra concludes.
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