Indian Real Estate Trends 2008

• Cost of real estate has risen considerably over the last 10 years. In fact, Investment in a property has turned into a productive option for majority of people. In most cases, the prices have only gone up.
• We’ve got property developer billionaires in this cash rich sector. The driving force behind this Indian real estate boom is the steady extension of ITES, BPO, KPO, and Outsourcing services and the subsequent development of the middle class status.
• Both commercial and residential growth are running at a marathon pace.
• The most favoured cities for investors are Bombay, Bangalore, Hyderabad, Madras, Gurgaon, New Delhi, Pune, Chandigarh, Calcutta and Jaipur.

Reasons for Growth

One of the main reasons for this boom is that in the year 2006, Indian government give consent to 100 percent foreign direct investment. This has enabled foreign residents maximize their profits through bidding for Indian real estate along with their local associates.

The growth may be also attributed to several factors such as economic reform and liberalization, increased globalization, increase in business opportunities, heightened equity market activity, increasing demand, enhanced transparency, legitimized funding and favourable demographics.

Real Estate Venture capital funds have propelled Indian Real Estate industry to become one of the highest investment generating avenues. Also the fact that India’s seven Real Estate powers like DLF and Unitech are their in the Forbes list of 54 Indian billionaires crystallizes the sector’s strength. Industry was able to attract significant interest from domestic and foreign investors keen to be a part of the real estate growth

The Future Trends

The real estate industry is estimated to reach $60 billion by 2010 with a growth rate of 30 per cent. The industry entered the Dalal Street in a big way and floated 12 public issues in the year, making it a leading sector in terms of fund raising. Currently, private property developers are largely focusing on constructing housing units for middle class and poor. Rising disposable income and the trend towards nuclear families are the significant factors pushing the demand for residential properties in the country.

Many eminent foreign builders like Dubai-based Emmar Properties have shown keen interest in Indian real estate and have joined hands with Indian constructors for investment. Other major foreign players in Indian realty market includes Japan’s Kikken Sekkel, UK’s High Point Rendel , Cesma International and Lee Kim Tah Holdings from Singapore, etc. It is expected that all these foreign investors will exercise latest technology, management skills and regulation policy to make it big in Indian real estate market

Another factor that plays a critical role in the current trend in the Indian Real Estate industry is the development of physical and social infrastructure. Residential, commercial offices, retail and hotels have their own place in the market. The presence of real estate majors from within India as well as abroad have ensured constant supply of capital which is absolutely necessary for the large scale of development that has been undertaken, especially in the infrastructure expansion of roads, airports, ports and SE’s that require large funding India’s biggest realty developer, DLF continued its supremacy over others. The firm launched the a mega IPO of over Rs 9,000crore, followed by HDIL’s Rs 1,700 crore and Puravankara Projects’ Rs 850 crore.

About the Author: Rahul Boss is working as an architect in India has developed trustworthy commercial apartments.