is a very lucrative destination when it comes to buying
and selling properties. Today, India is one place where the
real estate sector is flourishing to its
best. The real estate
market of India is developing at a fast and attractive pace. India
has become one of the most favorite places among the investors all
around the world and owing immensely to the technological innovation
like the building up of the metro networks. With the globalization
bandwagon increasingly finding its way to the country, coupled with
India's bludgeoning population, everyone is stepping up to book their
piece of the property. Interestingly, most highly profitable business
venture's still be positioned in India's big cities but small-cities
are also catching up fast and cashing in on the property-boom.
Taking the case of South India especially
and Chennai, the real
estate scenario has undergone a complete sea change and has
beaten North Indian realty prospect where
the likes of Mumbai and other cities dominated
the real estate industry.
Indeed, the globalization has changed the fortunes of Indian
real estate. With the arrival of foreign MNC and industries
with BPO, KPO and other ITES solutions in India, there has been
a huge change in the real
estate scene in India as the boom in real
estate has led to availability of large infrastructure, quality
of life and cost of living. The reason behind the popularity of
real estate in India is the burgeoning IT sector that is churning
huge power jobs for educated Indian. These jobs are indirectly helping
the Indian real estate by taking it to the new heights of prosperity.
Companies that are looking for offshore business, India have become
a favorable investment destination due to low cost of labor.
Over the past few decades, there has been an unprecedented rise
in the real estate business in India.
Since property in India is becoming a
heaven for safe investments, Foreign
Direct Investments (FDI) in India, has increased by 100% within
two years comprising major share in real estate
and infrastructure. As a result India has seen a rise in the share
of real estate in terms of FDI influx which increased from 4.5 %
in 2003-2004 to 10.6 % in 2004-2005. The situation is getting better
and better and this is evident from the fact that the real estate
share increased to about 16 % in 2005-2006 and has been increasing
since. In addition, the country is trying to successfully host the
Common Wealth Games in 2010 and Cricket World Cup Tournament in
2011. There is dire need to emphasize the development
of real estate and tourism related infrastructure in Delhi
& N.C.R to face the national and multinational influx
in the coming years, as there will be great need of habitation unit
as well as travel and tourism sector. Also, Delhi
has started the process to bid for the Asian Games in 2014.
India is expected to see a 1.3 billion population by 2020. That
means there will be an escalated demand for residential
property in India to the tune of 90 million dwelling units.
The global real-estate consulting group Knight
Frank has ranked India 5th in the list of 30 emerging
retail markets and has predicted an overwhelming 20% growth
for the Indian retail
segment by 2010. It has also brought to light that investment
in the retail real estate segment at present yields 13-16% returns.
Furthermore, another survey by real-estate consulting
firm CB Richard Ellis (CBRE) has derived that office space in Mumbai
is more expensive than Manhattan and has marked Mumbai among the
world's five top most expensive places.
Why and when to Invest In Indian Real
Property in India has become a dream for
every investor looking forward to earn profits due to the flying
high on the wings of booming real estate in India.
All are opting Indian property market for
- India has a growing economy which has been rising continuously
with 8.1 percent increase witnessed in the last financial year.
The unpredictable boom in Indian economy increases the demand
for real estate sector.
- Emergence of a large number of Fortune 500 and other reputed
companies will attract more companies to start their operational
bases in India thus creating more demand for corporate space.
- There are many heterogeneous options to invest in property across
India to meet all your property desires like Residential, Industrial
- Around India 2 million new graduates are likely to be produced
from various Indian universities during this year. This huge number
increases demand for 100 million square feet of office and industrial
space across India.
- Real estate investments in India with the better planning &
research, give up huge dividends. 70 percent of foreign investors
in India are making profits and another 12 percent are breaking
- Not only IT, ITES and Business Process Outsourcing (BPO), India
has shown its expertise in sectors like chemicals, auto-components,
pharmaceuticals, apparels and jewellery also where it can match
the best in the world. These positive attributes of India attract
more foreign investors.
The comfortable FDI rules implemented by Government of India last
year have attracted more foreign investors and this results real
estate in India is the most lucrative place at present. The
revised investor friendly policies give the independence to the
foreigners to have possession of property and dropped the minimum
size for housing estates built with foreign capital to 25 acres
(10 hectares) from 100 acres (40 hectares). With this unexpected
change in investment policies, the abroad firms can now build commercial
buildings as long as the projects exceed 50,000 square meters (538,200
square feet) of floor space. The Real estate sector in India is
attractive and on boom. We suggest that this is the optimum time
to implement your plans related to the investment
in real estate in India.