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Real
Estate India
"India
is the most exciting real estate market
in Asia," says Michael Smith, head of Asian real
estate investment banking at Goldman Sachs. "It's one of
the last major countries in Asia with an improving market." Indian
real estate industry has been expanding at an exponential rate
with a booming economy and healthy GDP growth. As per the industry
estimates, the real estate industry in India
has been growing continuously at 33 per cent CAGR (compound annual
growth rate) and estimated to be a $50 billion industry in the next
four years. Followings are some of the major drivers of this magnificent
growth:
- Increasing purchasing power: Due to
increase in Job opportunities in India and the high standard of
living, the purchasing power of the citizen has increased. The
number of households with "high income" is expected to increase
by 60% in the next four years to 44 million households.
- Favorable demographics: India is a
country of great diversity with a wide range of landform types,
including major mountain ranges, deserts, rich agricultural plains,
and hilly jungle regions. India is being targeted by global real
estate giants due to its favorable demographics.
- Easily availability of cheap finance by customer
friendly banks & housing finance companies: There are number
of options in India to avail cheap finance. The need for loans
is taken care of by specialized housing finance companies, foreign
banks and nationalized banks spread across the country [e.g. HDFC
Property Fund, DHFL Venture Capital Fund, Kotak Mahindra Realty
Fund, Kshitij Venture Capital Fund and ICICI’s real estate fund,
India Advantage Fund etc] that are set to play the most important
role in the development of the real estate industry and are the
end users.
- Professionalism in real estate: Real
Estate in India has been organized and is gaining professionalism
due to the existence of financial institutions, academic institutions,
real estate appraisers and government sector.
- Reforms initiated by the government of India:
There are many favorable reforms initiated by the government of
India to facilitate investments mainly in the economic and industrial
sector. The new stand adopted by Indian government regarding foreign
direct investment (FDI) policies has encouraged the domestic as
well as foreign investors in real estate to invest in Indian Properties.
The rapidly growing Indian real estate market
is accelerating towards maturity with increasing participation from
famous national and international players, growing investor interest
and a market-friendly approach. Last few years are the most memorable
years for the Indian real estate market
and the boom in Indian real estate. In recent
years, India's explosive economic growth has attracted the whole world
and its property market
has indeed emerged as one of the most appealing and attracting investment
destinations for both domestic and foreign investors. Presently,
selling and buying
Indian property is now considered as the most attractive and
profitable business opportunity. New demands have strengthened the
real estate markets across the commercial,
residential
and retail sectors
in India. There is a rapid growth taking place in both residential
and commercial sectors that is attracting
huge investments in Indian
real Estate.
India has emerged as a top-most favored destination for FDI
in the world and displaced US at the second position. India has
attracted more than three times foreign investment at US$ 7.96 billion
during the first half of 2005-06 fiscal, as against US$ 2.38 billion
during the same period of 2004-05, due to the changing investment
scenario in India. This ranks India amongst the "dominant host
countries" for FDI in Asia and the Pacific (APAC).
The optimistic and encouraging approach of Indian government is
the major aspect behind the enormous rise of
the Indian Real Estate sector, which is the second largest
employer after agriculture in India. This budding sector is today
witnessing development in all the major segments of the industry
such as residential, commercial, retail, industrial, hospitality
and healthcare in metros of India such as Mumbai,
Delhi & NCR,
Kolkata and Chennai.
Easier access to bank home loans and
higher earnings are some of the key factors behind the sudden jump
in Indian real estate.
Thus, the Indian Real Estate industry
is lined up for a complete revolution. In current scenario, if there
is any powerful investment tool that brings burgeoning maximum financial
returns, it is INDIAN REAL ESTATE !!
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Indian Real Estate Portal
