Commercial real estate sector is in boom in India. After liberalization of the economy, Indian real estate business took an upturn in the last fifteen years. With the advent of multinational companies to India to set up base here, especially the IT sector ,the demand for land has risen up and with that the prices have also shot up. Research estimates that Indian Real Estate market is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. ..
The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract global investors.
In India, the commercial real estate requirement is led by the leaders of the IT industry, this includes the BPO and ITES sectors.
It is estimated that the demand for space by the IT/ITES sector alone is expected to be 150 million sq.ft by 2010.
The demand for land in metro cities like Delhi, Mumbai and Chennai is huge and prices for the same have shot up to huge proportions. These cities are expanding in a huge manner to accommodate the ever demanding requirement for land. For example, Bangalore which is considered as the IT capital of India, is already short of land and is expanding to create something called as Greater Bangalore. This is to dedicate land to the IT and BT (Biotechnology) industries.
The increase in purchasing power has resulted in big retailing companies setting up base in India; as a result there is a mushrooming of retail centers across the country.
The industrial sector is experiencing a huge surge, resulting in increase demand for land. There is a shortage of land in bigger cities, which has resulted in companies setting up bases in smaller cities. These cities are also called as Two-Tier cities.
Indian real estate is experiencing an overall growth in all sectors like IT, BT, Industies, Healthcare etc,apart from this , in urban India, there is a shortage of space in the residential sector by approx 6.7 million housing units. The bigger cities are expanding to accommodate the growing population and as a result there is a huge demand for land.