The
Indian economy has grown rapidly during the past 15 years, which
contributed to exponential growth in real estate properties across
India. According to a recent article by Indian government, realty market
in India accounts to a whopping 11% of the National GDP. Ever wondered
why there is rapid growth in this industry, this case study gives a
snapshot of factors that is contributing to its favor.
Population of many large cities in India has grown tremendously over the past decade. There is a colossal demand for residential and commercial properties in Tier 1 and Tier 2 cities. Some of the Top 5 residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many key drivers for this exceptional real estate growth and investment in India.
Government
of India has put up a roadmap for economic reforms to step up
Infrastructure development by inviting investments from domestic and
international players by creating business-friendly and
Investor-Friendly atmosphere. Also, easing of monetary economic policies
by cutting interest rates to make home loans by banks to buyers easily
available and affordable.
Growing Urbanization and large scale migration of population from
rural to urban locations in search of employment, higher income, better
living conditions which has led to an increased demand for residential
and commercial properties in the area.
From an Investment standpoint, since stocks and mutual funds are
extremely volatile to market conditions, more people including
middle-class income group, Non-Resident Indians are investing in real
estate which offers high returns both in Short and Long term investments
due to soaring property prices. Investment in residential properties
also gives an option for residential buyers a second income to
supplement their monthly Income.
Business activity and Setting up of IT development Centers, BPO,
large scale manufacturing units in automobile and Engineering Sectors by
multinationals has spurred growth in commercial office space
requirements. As more and more MNCs setup shop in cities it opens new
lines for overall growth & investment in real estate industry. These
industries bring lot of job opportunities in to the system. More jobs
means rising income levels, increased purchasing power for property
buyers which is also another factor for real estate investment and
growth.
State Governments in India have given green signal to develop
residential townships, commercial centers, shopping malls near
Industrial hubs, IT hotspots inviting both domestic and international
investments for Constructing Connectivity bridges, state roadways, rail
networks to ease the commuting traffic. Many large residential and
commercial projects have sprung up to cater to the growing housing
demand for real estate.
Augmenting the real estate growth are government policies in the
pipeline to allow FDI (foreign direct investment) in retail, insurance,
healthcare sectors of the economy which will likely see the real estate
development and investment opportunities in India for many years to
come.
International Land Developers, one of the leading real estate company in india offering best residentail property in Gurgaon, Apartments and Flats in Gurgaon and are coming up with New Projects in Gurgaon
Population of many large cities in India has grown tremendously over the past decade. There is a colossal demand for residential and commercial properties in Tier 1 and Tier 2 cities. Some of the Top 5 residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many key drivers for this exceptional real estate growth and investment in India.
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