Monday, August 12, 2013

Indian Economy, Real Estate and Property

The continuous growth of retail sector is also playing a key role in the growth of the realty sector in India. With the growth of the retail sector estimated at 25 per cent in the next few years, it is likely to create a demand for real estate measuring more than 200 million sq. ft.  

Numerous shopping malls with an average area of one-million sq. ft. are already in place or on their way in a number of cities in India including Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Hyderabad, Chandigarh, Ludhiana and Ahmedabad etc.  

As the burgeoning middle class in the country are often earning more than what their previous generations did, there is an increasing demand for residential property and real estate as well. Industry reports forecast a huge demand for residential property and realty in the days to come. Even a casual tour of the cities and even smaller towns in the country bear ample testimony to such a development.  

Consumers are now finding acquisition of residential property easier as many leading banks, both in public and private sectors, are offering housing loans with easy repayment terms. All this has been sending realty developers laughing all the way to banks.  

In a major departure from the earlier times, leading realty companies in India such as DLF, Parsvnath, Ansals etc. are adopting corporate style of functioning by entering the stock market. And, many other realty groups are also thinking along the same line. Some of them are also getting involved in PPP, i.e., public private participation models with the government.  

In order to maintain the growth, the central government has allowed the entry of foreign direct investment (FDI) in the real estate sector. There are a number of overseas companies from places like Dubai, Singapore, the Philippines, Malaysia, Britain, US and Israel that have been operating here. Real estate surveys conducted in recent times indicate that a huge amount of investment is likely to be made into the Indian real estate sector in the coming years.

No comments:

Post a Comment