Infrastructure in India is witnessing a positive upward thrust and due to it real estate market is also flourishing. As a result of the healthy growth trends in the post liberalization era, a high demand is noticed in both the segments viz. commercial and residential. No doubt real estate segment has emerged up as one of the most favorite investment options in India.
The rapidly increasing services sector in India has amplified the commercial real estate demand in the country. According to the recent survey, The Information Technology (IT) sector alone is expected to require 150 million sq. ft. of space to cater its operations across the country, by 2010. The spearheading IT sector has also increased the marginal propensity of investment and income potential of IT savvy Indian youth.
IT is not the only bang of the buck. Retailing is another major segment that is contributing to the spectacular real estate growth in India in the last decade. More and more industrialists and business tycoons are now investing in the retail sector. The retail industry in India is projected to grow by more than 25 per cent for the coming years. To maintain the tempo of retail growth, 220 million sq. ft is required in the next 3-years. Now 27 million sq. ft. is available for the industry and another 90 million sq. ft. will be added by 2008. As the Indian middle class is expanding, the residential sector is also witnessing a spurt in demand. According to industry reports, there is a requirement of 19.4 million residential units in India now.
This growth has offered huge opportunities for the real estate developers, banks and lending agencies. As the Indian government allows 100 per cent FDI in real estate projects, foreign majors like Signature from Dubai, Ayala from Philippines and many more from Malaysia followed by Britain, America, Israel and Singapore have been into plans to operate their projects in India.
Undoubtedly, it can be said the current decade is going to offer path breaking results to the real estate sector.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Paisawaisa as a finance specialist. Real estate company in Dubai