1. Lower rates are a sign of mature economy with plentiful savings and low inflation. High interest rates are associated with developing economies with less savings and higher inflation.
2. The US gov pays less than 3% for 10 years of bonds where as in indian government pays 7.5%. In the US, mortgage financing is well-established, with a developed mortgage industry that offers various loan options and competitive interest rates. This availability of mortgage financing facilitates property transactions and homeownership. In India, although mortgage financing has been growing, it is relatively less accessible, with stricter eligibility criteria and higher interest rates – limited collateral options – lengthy documentation and approval process.
3. The US real estate market offers a broad range of investment opportunities, including residential properties, commercial properties, REITs (Real Estate Investment Trusts), and other real estate investment vehicles. The market provides diverse options for investors with varying risk profiles. In contrast, the Indian real estate market has traditionally been more focused on residential properties, with limited investment options in commercial properties or REITs. However, the Indian market has been gradually expanding its investment opportunities and diversifying its asset classes.
USA – real estate investment clubs , real estate syndication.
Common – joint ventures, ownership, mutual funds, REIT’s equity.
India is in the growing stage. Implementing of this investment options
4. The regulatory frameworks governing the real estate sector also differ between the US and India. The US has well-defined laws and regulations that protect the rights of buyers, sellers, and investors, ensuring transparency and accountability. The Indian real estate sector has undergone significant regulatory reforms in recent years, such as the implementation of the Real Estate (Regulation and Development) Act (RERA), aimed at enhancing transparency and consumer protection. However, there may still be gaps in enforcement and compliance, leading to varying levels of market transparency and buyer protection across different regions of India. (Formed in 2014)
RERA Limitations:-
  • Limited awareness and implementation
  • Delayed formation of regularity authorities - each state has not established this authorities or have less manpower and adequate resources leading to slower process of complaints and disputes
  • Incomplete project registration - people fail to register, which makes it challenging for homebuyers to seek legal resource and protection under this act
  • Incomplete implementation of dispute resolution mechanism - it provides establishment of real estate appellate tribunals to resolve disputes between homebuyer and developer. The efficiency of this tribunals has been varied across the state. Thus delay in in resolving disputes can prolong the legal process and impact timely delivery to justice to parties.
  • Limited penalties and accountability - penalty is relatively very lenient which fails to sufficiently hold developers accountable for their actions.
5. The US real estate market has seen more extensive adoption of technology in various aspects of the industry, such as online property portals, digital transactions, virtual property tours, and data analytics. Technology has played a crucial role in streamlining processes, enhancing transparency, and improving the overall customer experience. While the Indian real estate market has also witnessed increased technology adoption in recent years, it may still lag behind the US in terms of overall digitalisation and the integration of technology into real estate operations.
  • Property listing platforms
  • Transaction process is tedious in India
  • Real estate technology startup - USA is well established and reached the maturity stage. Where else, in India technology is still upgrading and all the financial tools are getting advance i.e. AI, machine learning.
6. There are hundreds of other factors that affect the real estate market in India such as cost of materials used in construction, loan rates, population, spending capacity, lifestyle changes, economic status, etc.
“In its beginnings, Beverly Hills was agricultural flat land – a green oasis that fed a growing urbanity.” Norman Foster, Architect.