Real estate in India: A snapshot

For global investors, non-resident

Indians (NRIs) and developers, real
estate in India, hands down, still tops
the list of the most favorite
investment destinations in the world.
Riding on the back of increasing
globalization and investor-friendl
government norms, Indian real
estate has come a long wa from !"st
a thriving sector to the second biggest emploment generating segment
after agric"lt"re in India.
#ontrib"ting to nearl abo"t $.% percent to India&s '() ('ross (omestic
)rod"ct), real estate in India has reall come of age. F"rthermore, the F(I
(foreign direct investment) in the ind"str is anticipated to to"ch the *+( ,-
billion mark in the ne.t /0 ears, as per real estate e.perts. Rapid
"rbanization, positive demographics, the rising trend of n"clear families,
high-income growth, growing ho"sing demand and infrastr"ct"re are some of
the factors that have "pped the val"e of real estate in India, aiding it to step
forward.
Market and investment dynamics
1wing to the ab"ndance of bank loans which are "p for grabs, perked "p
living standards and growing income levels, real estate development in the
co"ntr, which was once hemmed to bigger cities, has now shown a
remarkable progress in small "rban sprawls. 2s per real estate e.perts, the
real estate sector of the co"ntr is likel to post ann"al reven"es of *+( /30
billion b ,0,0, m"ch more against the *+( $$.3 billion in ,0/0-//.
4he constr"ction sector in the co"ntr boasts of ho"sing, townships and
b"ilt-"p infrastr"ct"re, which bro"ght to pass F(I worth *+( ,,$5/.6-
million in the 2pril-2"g"st ,0/% period. 7ith 'odre! properties (investment
"p to Rs 6000 crore) and *nitech 8td (Rs 300 crore deal), the investment
climate in the co"ntr is likel to boost the con9dence of the members of the
real estate comm"nit.
Steps taken/need to be taken
In a move to give an edge to the realt sector, the government allowed /00
percent F(I in the constr"ction sector. F"rthermore, the (epartment of
Ind"strial )olic and )romotion is looking to looking to rela. the F(I norms, in
a bid to promote investment. In addition to it, the Real :state ;ill ,0/%,
approved b the *nion #abinet, has emerged as a pioneer initiative b the
government that takes pride in giving <"ick verdicts, delivering a "niform
reg"lator environment and g"aranteeing a sstematic growth of the
ind"str.
2s per the proponents of the real estate market, India m"st invest *+( /,
trillion in the ne.t ,0 ears, in an attempt to move "p its "rban infrastr"ct"re
and maintain the pace with the b"rgeoning "rbanization. Rising demand for
space from vario"s ind"stries like healthcare and ed"cation has opened the
doors for the realt sector signi9cantl. F"rthermore, rising n"mber of
to"rists in the co"ntr has p"shed "p the demand for service apartments
several notches "p.
Source= #ommonFloor.com
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