Dubai: Just a month after a new government took over the reins in New Delhi, India’s developers are out spreading the word that change will create needed momentum in the property market. This was the theme developers harped on at a trade show for Indian realty in Dubai last week.
Now, Omkar Realtors and Developers, which has all of its interests in Mumbai with projects ranging from Rs10 million (Dh610,000) to Rs100 million, echoes the change is good sentiment. “Foreign direct investments can be made in the sector and with no strings attached, and the Land Acquisition Act will ensure there is less rationale for projects to be caught in legal wrangles,” said Umesh Jaandiyal, head of sales for the GCC at Omkar.
“It’s true that transaction levels in a market such as Mumbai have been lower than during the good times — but this hasn’t pulled prices lower.”
Indeed, India’s property market has been a relative under-performer in the recent past. Which is why, developers and other industry stakeholders are hoping government led reforms can revive it. Higher foreign direct investments into realty can provide that fillip. From April 2013 to February this year, this was estimated at $1 billion (Dh3.67 billion) plus, compared with $3.1 billion between April 2011 to March 2012.
In a market like Mumbai, investors have been put off by the steep mark-ups that property has been going for. “But Mumbai is a market unlike Delhi’s National Capital Region or elsewhere purely because there’s limited speculator-led buying taking place,” said Jaandiyal. “It’s always been the end-user buying it, and even if there is buyer resistance to some price levels, it will soon wear off.”
Omkar’s strategy has been built around redeveloping slum land into a mix of affordable housing and the high-end. “If one considers that vast swathes of Mumbai are still designated as slums means there are plenty of opportunities for a developer such as us,” said Jaandiyal.
“Because of the nature of our projects, we have been fortunate with getting clearances and in the way we have attracted private equity.”
On whether a Dubai project will interest the company, he said: “If it happens it has to be a joint venture and with the right partner. But we will keep our options open on potential land acquisitions in Dubai.”
