NEO BANGALORE
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INVESTMENT<br />
OPPORTUNITY:<br />
<strong>NEO</strong> <strong>BANGALORE</strong><br />
06<br />
Indian Opportunity<br />
HOUSING DEMANDS LIKELY TO WITNESS AN IMPROVEMENT<br />
IN THE COMING QUARTERS; PRICING WITNESSED MIXED TRENDS<br />
Economy back on track,<br />
GDP grows at 5.7% in June Quarter<br />
India's economy bounced back to record a growth rate of 5.7% in the rst quarter<br />
(April June) of 2014 15, up from 4.6% recorded in the preceding quarter. The GDP for<br />
the nancial year 2013 14 was recorded at 4.7%, marking it as the second consecutive<br />
year of sub 5% growth. The Central Bank has, moreover, projected the economy to grow<br />
by 5 5.6% in the current scal.<br />
Policy measures to boost housing sector<br />
The Union Budget 2014 15, unveiled in July 2014, focused on reviving the sentiment of<br />
home buyers and investors, while promoting investments to provide a llip to the<br />
construction and housing sector. The government's vision of providing housing for all<br />
by 2022 through new measures such as the allocation of nearly INR 4,000 crore to<br />
the National Housing Bank, setting up a mission on low-cost a ordable housing. The<br />
extension of additional tax incentives by increasing the interest deduction to INR 2 lakh,<br />
moreover, would trigger renewed interest in the real estate market. Meanwhile, realty<br />
players expect the Central Bank to reduce lending rates, which is likely to bene t the<br />
housing segment.<br />
Liberalization of Foreign Direct Investment (FDI) norms in the construction sector by<br />
reducing the built-up area from 50,000 sq. m. to 20,000 sq. m., and the minimum<br />
capitalization requirement from US$ 10 million to US$ 5 million would help boost FDI in<br />
housing projects. Additionally, the proposed development of new industrial corridors,<br />
airports, mass transit projects, and highways, together with the allocation of INR 7,060<br />
crore for the creation of a 100 new SMART Cities are signi cant initiatives to boost<br />
India's urban development.<br />
Another signi cant initiative was to nally provide necessary incentives and a tax passthrough<br />
status to Real Estate Investment Trusts (REITs) in India that are likely to attract<br />
signi cant investments from foreign as well as domestic investors.<br />
Summary Indian opportunity The Bangalore Boom<br />
The new Bangalore<br />
<strong>NEO</strong> Bangalore<br />
About Artha O er FAQ S
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