The Britain’s decision to leave European Union has been cautiously watched by real estate investors. The investment activities are widely expected to come to halt at least for some time till further clarity arises. However, economists have revealed that there is no need of excess worry as the impact is likely to affecting India. On contrary to that, India has some benefits from the eventful decision from Britain.
Backed by a strong economy and healthy capital inflows, Indian real estate is marching through its revival stage. Brexit is not going to interrupt our economic growth, since Indian office market leasing is only 5-7% dependent on the companies from Britain. In addition to that, we are also having more investments and Private Equity (PE) funds raised from other European countries.
The investors in Britain who are looking for real estate investments will assess the risks involved with investing in India and compare it with investing with other EU countries. While countries like Greece, Portugal, Spain will become less attractive destinations for investors in Britain following the Brexit, the reviving real estate sector and growing economy tags are expected to attract them to India.
It is quite certain that investors in Britain mostly be fence sitters in real estate until the ripples of Brexit will settle down. At some point, when they become active, Indian real estate promises them a lot. We are emerging from the back, riding on the back of Real Estate Bill and several other factors like home loan dip, Smart Cities etc. providing a market momentum for real estate in India.
The inflation rate has been maintained steady for above one year. Our rural and agriculture sector is catching up following the fair monsoons. As Brexit has happened, the US Federal Reserve can be foreseen to defer from hiking their interest rates and this benefits many countries including India. After the Brexit, the strategy of Britain will also be crucial for India.
The bilateral trade between India and Britain is focused on exports. Though the compliance cost will rise for exports from India, since Brexit happened, India can negotiate well with Britain. Having uncertainty over their stability in trade after losing their free trading with EU, Britain is likely to be under pressure. Being the fastest growing economy of the time, India certainly can offer balanced trade for Britain.
Brexit has also brought silver lining for Indian citizens also. The pound has been depreciated against Indian Rupee and people who wish to travel to Britain can now travel at modest prices. Although the scenario is a bit cloudy, those who wish to invest in Britain can also take it at relatively affordable rates particularly cities like London.