The
real estate sector is one of the largest employment generators
in India
Real Estate
in India
Reliable estimates indicate that real estate in India
is a $12 billion dollar a year industry that has enjoyed
a growth rate of about 30% per year over the last decade
or so.
This trend looks to continue apace into the foreseeable
future, with major hoteliers developing properties, and
major investment firms looking to tap into the travel
and tourism industry boom.
Nearly 80% of the real estate market in India is made
up of residential properties, with the rest spread out
among offices, shopping malls, hotels, hospitals, and
the like.
Off-shoring business, including high-end technology consulting,
call centers and software programming houses have formed
the bulk of this double-digit growth, and for the 2003-04
fiscal year occupied over 10 million square feet of real
estate development.
Each Indian rupee invested in housing construction adds
INR 0.78 to the gross domestic product. The real estate
sector is also contributes to the development of over
250 other auxiliary industries. The rating agency ICRA
has conducted a study that ranks construction industry
3rd among the 14 major sectors in terms of direct, indirect
and induced effects in all sectors of the economy.
At the moment, a number of factors make Indian Real estate
a favorable investment. The Indian government has begun
to move at a rapid pace to improve the country's infrastructure.
Real estate companies that can successfully maximize their
own performance and operational efficiency will be poised
to reap the benefits of the double-digit growth within
the markets.
The real estate sector is one of the largest employment
generators in India, second only to agriculture. India's
foreign direct investment is at an all time high and exceeds
all other neighboring countries. Additionally, India's
stable political climate makes it a better target for
long-term investment than many of its neighbors.
Major institutional investors like AMB, Hines, ING, JP
Morgan, Merrill Lynch, and Prudential have already made
considerable commitments in Indian real estate.
U.S. buyers continue to be confident in buying Indian
real estate since Indian properties continue to be a much
better value than comparable properties abroad. Also,
property taxes are very low in comparison to the US and
Canada, and growth rates are unbeatable.
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