Modi’s housing drive forecast to attract $1.3trn in FDI to India

Prime Minister Narendra Modi’s drive to bring homes to the country’s 1.3 billion people combined with a rise in average incomes could attract as much as $1.3 trn investment into the  housing  sector over the next seven years, according to a report published last week by the brokerage and investment firm CLSA India (formally Credit Lyonnais Securities Asia).
The firm expects 60 million new homes to be built between 2018 and 2024, creating about 2 million jobs annually and boosting India’s GDP by as much as 75 basis points.The volume of social and affordable housing could subsequently  rise by almost 70% to 10.5 million annually by 2024.
“The housing sector is at a tipping point and will be the economy’s next big growth driver,”  CSLA Mumbai-based analyst Mahesh Nandurkaris predicting. “The catalyst is the government’s big push for an ambitious housing program.”
Modi is  on a mission to expand affordable housing in Asia’s third-largest economy and in  February,his government granted affordable-housing builders “infrastructure status,” making them eligible for state incentives, subsidies, tax benefits and institutional funding.
The Housing for All program  aims to construct 20 million homes across the country and dates back to 2015.
In the past five years demand for housing has been fuelled by a drop of about 275 basis points in mortgage rates which now stand at 8.5% Prices have remained stable while per-capita incomes have posted a compound annual growth rate of about 10%,  according to the CLSA report.